agribusiness in zimbabwe opportunities for ......2000. the royal netherlands embassy (rne) in harare...

AGRIBUSINESS IN ZIMBABWE

OPPORTUNITIES FOR ECONOMIC COOPERATION

pg. 2 AGRIBUSINESS IN ZIMBABWE / OPPERTUNITIES FOR ECONOMIC COOPERATION

FOREWORDOctober 2014

Over the last two years, the Embassy of the Kingdom of the Netherlands in Harare, Zimbabwe, andthe office of the Agricultural Counsellor at the Embassy of the Kingdom of the Netherlands in Pretoriahave witnessed an increasing interest from Dutch entrepreneurs to get involved in the(re)development of the agricultural sector in Zimbabwe. In order to see where the best possibilitiesfor Dutch businesses lie, the Embassy commissioned Brightface Enterprises P/L to undertake amarket study in order to map the opportunities and risks, especially from the perspective of thoseagricultural disciplines with a strong expertise in the Netherlands.

The result of this study you find in front of you. The report gives a good overview of the context thatinvestors, service providers and traders in the agricultural sector in Zimbabwe have to work with. Italso shows the strengths and weaknesses, but above all, the potential of this sector in a country thatonce was referred to as the “bread basket” of Southern Africa. Although that was more than adecade ago, there is reason for optimism for revival of the sector and aim for this title again in say2025.

Dutch companies could play a crucial role in this, as they have extensive knowledge and technologyto offer. While doing business with Zimbabwe, a number of risks should be kept in mind at all times,but the high potential revenues may allow to include risk mitigating measures into the investor’sbudgets. The fact that Zimbabwe has been incorporated in the list of eligible countries for the DutchGood Growth Fund (DGGF) for instance, is proof of increased possibilities for doing business here.

Zimbabwe’s climate, favourable geological conditions as well as the generally well-qualified andskilled labour, in combination with a reasonably well developed infrastructure (for Africanstandards), and its central location in Southern Africa, make it an attractive destination for Dutchentrepreneurs, also - or especially - in the agricultural sectors.

We would like to invite you to read this report, and discover that Zimbabwe has a lot of interestingopportunities to offer. The best thing you could do, after reading this report, is come to Zimbabwe inperson and establish the right contacts with possible business partners on the ground. Both theEmbassy in Harare as well as the office of the Agricultural Counsellor in Pretoria, are most willing toassist and advise you on such a visit.

Gera Sneller Niek SchellingAmbassador of the Netherlands Agricultural CounsellorHarare Pretoria

2 Arden Road, Newlands, Harare 210 Florence Ribeiro/Cnr Muckleneuk AvePO Box HG 601 Highlands, Harare PO Box 117 │ 0001 Pretoria, South Africa (+263) 4 776 701/6 (+27) 12 425 4570 or (+27) 83 447 [email protected] [email protected]

mailto:[email protected]

mailto:[email protected]


TABLE OF CONTENTSAGRONYMS ........................................................................................................................................7

EXECUTIVE SUMMARY ........................................................................................................................9

1 INTRODUCTION.........................................................................................................................11

1.1 GOALS AND OBJECTIVES ....................................................................................................11

1.2 METHODOLOGY.................................................................................................................12

1.3 STRUCTURE OF THE REPORT ..............................................................................................13

1.4 ACKNOWLEDGEMENTS......................................................................................................13

1.5 DISCLAIMER.......................................................................................................................13

2 GENERAL PROFILE OF ZIMBABWE..............................................................................................14

2.1 INTRODUCTION .................................................................................................................14

2.2 PHYSICAL GEOGRAPHY ......................................................................................................14

2.3 HISTORICAL CONTEXT........................................................................................................17

2.3.1 Pre Colonial Era..........................................................................................................17

2.3.2 British Colonial Rule, UDI and Civil War ......................................................................17

2.3.3 Zimbabwe Independence: from Bread Basket to Basket Case.....................................18

2.4 POLITICAL DEVELOPMENT .................................................................................................19

2.5 ECONOMIC DEVELOPMENT ...............................................................................................19

2.5.1 Economic Meltdown and Hyperinflation ....................................................................19

2.5.2 Economic Stabilisation ...............................................................................................20

2.5.3 External Sector...........................................................................................................21

2.5.4 Financial Sector..........................................................................................................23

2.5.5 International Economic Relations...............................................................................24

2.6 RURAL DEVELOPMENT.......................................................................................................26

3 DOING BUSINESS IN ZIMBABWE................................................................................................26

3.1 INTRODUCTION .................................................................................................................26

3.2 MARKET ACCESS................................................................................................................26

3.2.1 Economic Partnership Agreement (EPA).....................................................................27

3.3 CURRENT TRADE TARIFFS ..................................................................................................27

3.4 INVESTING IN ZIMBABWE..................................................................................................28

3.4.1 Investment Modalities ...............................................................................................28

3.4.2 Company Formation ..................................................................................................28

3.4.3 Foreign Branches .......................................................................................................29

3.4.4 Foreign Investments ..................................................................................................29

3.4.5 Investor Visa ..............................................................................................................29

3.4.6 Exchange Control Regulations....................................................................................30


3.4.7 Taxation.....................................................................................................................30

3.4.8 Finance ......................................................................................................................30

3.5 INDIGENISATION AND ECONOMIC EMPOWERMENT..........................................................31

3.6 ENABLING BUSINESS ENVIRONMENT TO ATTRACT FDI.......................................................32

3.7 BUSINESS ENVIRONMENT ASSESSMENT ............................................................................33

3.8 CONCLUSIONS ...................................................................................................................36

4 ZIMBABWEAN AGRIBUSINESS SECTOR ......................................................................................36

4.1 INTRODUCTION .................................................................................................................36

4.2 INPUT SUPPLIERS...............................................................................................................37

4.2.1 Fertilizers and Crop Chemicals ...................................................................................37

4.2.2 Irrigation Development..............................................................................................38

4.2.3 Land Mechanisation...................................................................................................38

4.3 PRODUCERS.......................................................................................................................39

4.3.1 A2 and A1 Farmers.....................................................................................................39

4.3.2 Old Resettlement Farmers .........................................................................................39

4.3.3 Smallholder Farmers..................................................................................................39

4.3.4 Large Scale Farms ......................................................................................................40

4.4 PROCESSORS .....................................................................................................................40

4.5 MARKETS...........................................................................................................................41

4.5.1 National Retailers and Wholesalers............................................................................41

4.5.2 Informal Markets .......................................................................................................41

4.5.3 Exporters and Global Traders .....................................................................................41

4.6 NATIONAL ENABLING ENVIRONMENT................................................................................42

4.7 SUPPORTING MARKETS .....................................................................................................42

4.7.1 Knowledge Institutions ..............................................................................................43

4.7.2 Business and Financial Support ..................................................................................43

4.8 MAIN AGRICULTURAL SECTORS AND SUB-SECTORS ...........................................................43

5 GRAIN CROPS............................................................................................................................44

5.1 INTRODUCTION .................................................................................................................44

5.2 MAIZE................................................................................................................................44

5.2.1 Markets .....................................................................................................................45

5.2.2 Processors and Traders ..............................................................................................46

5.2.3 Producers ..................................................................................................................46

5.3 WHEAT..............................................................................................................................47

5.3.1 Markets .....................................................................................................................48



5.3.3 Producers ..................................................................................................................49

6 TUBER CROPS INTRODUCTION ..................................................................................................50

6.1 POTATOES .........................................................................................................................50

6.1.1 Markets .....................................................................................................................51


6.1.3 Producers ..................................................................................................................51

6.2 CASSAVA ...........................................................................................................................52

6.2.1 Markets .....................................................................................................................52


6.2.3 Producers ..................................................................................................................53

6.3 CONCLUSIONS ...................................................................................................................53

7 OILSEED CROPS .........................................................................................................................54

7.1 INTRODUCTION .................................................................................................................54

7.2 SOYA BEANS ......................................................................................................................54

7.2.1 Markets .....................................................................................................................54


7.2.3 Producers ..................................................................................................................55

7.3 COTTON ............................................................................................................................56

7.3.1 Markets .....................................................................................................................56


7.3.3 Producers ..................................................................................................................58

7.4 CONCLUSIONS ...................................................................................................................58

8 HORTICULTURE .........................................................................................................................59

8.1 INTRODUCTION .................................................................................................................59

8.2 PRODUCERS.......................................................................................................................60

8.3 PROCESSORS AND TRADERS ..............................................................................................61

8.4 MARKETS...........................................................................................................................62

8.5 CONCLUSIONS ...................................................................................................................64

9 LIVESTOCK.................................................................................................................................64

9.1 INTRODUCTION .................................................................................................................64

9.2 MEAT AND DAIRY, PIGS, POULTRY AND EGGS ....................................................................65

9.2.1 Producers ..................................................................................................................65


9.2.3 Markets .....................................................................................................................70

9.3 AQUACULTURE..................................................................................................................71

9.3.1 Introduction...............................................................................................................71


9.3.2 Producers ..................................................................................................................71

9.3.3 Traders and Processors ..............................................................................................71

9.3.4 Markets .....................................................................................................................72

9.4 CONCLUSIONS ...................................................................................................................72

10 OPPORTUNITIES FOR DUTCH AGRIBUSINESSES..........................................................................73

10.1 INTRODUCTION .................................................................................................................73

10.2 BUSINESS OPPORTUNITIES IN THE GRAIN SUBSECTORS .....................................................73

10.3 BUSINESS OPPORTUNITIES IN THE TUBER CROPS SUBSECTORS..........................................74

10.4 BUSINESS OPPORTUNITIES IN THE OIL SEEDS SUBSECTORS................................................74

10.5 BUSINESS OPPORTUNITIES IN THE HORTICULTURE SUBSECTORS .......................................75

10.6 BUSINESS OPPORTUNITIES IN THE LIVESTOCK SUBSECTORS...............................................76

10.7 SHORTLISTED BUSINESS OPPORTUNITIES...........................................................................76

ANNEX 1: AN OVERVIEW OF THE MAIN KNOWLEDGE INSTITUTION RELATED TO AGRICULTURE IN

ZIMBABWE ...................................................................................................................................80

ANNEX 2: INDUSTRY CAPABILITIES/CAPACITIES .............................................................................81

ANNEX 3: COMPANY PROFILES......................................................................................................82

ANNEX 4: LIST OF PERSONS INTERVIEWED ....................................................................................91

ANNEX 5: USEFUL WEBSITES FOR FURTHER READING .................................................................992

ANNEX 6: KEY VALUE CHAIN ACTORS ............................................................................................91

ANNEX 7: REFERENCES................................................................................................................999

Figures

Fig 1: Value Chain modelFig 2: Zimbabwe GDP development 2004-2014Fig 3: Zimbabwe ExportsFig 4: Imports Classified by Broad Economic CategoryFig 5: Distribution of loans and advancesFig 6: Broad Money (US$ Millions)Fig 7: Value Chain Model and various levelsFig 8: Grains and CerealsFig 9: Cotton production 2000-2014Fig 10: Development of export flower, produce and citrus 1986-2010Fig 11: Livestock Beef and DairyFig 12: Table Egg Production 2012-20114Fig 13: Monthly number of cattle slaughter 2010-2013Fig 14: Monthly pig slaughter trend 2010-2013


Tables

Table 1: Fact and FiguresTable 2: Explanation of Agro Ecological ZonesTable 3: Exports 2013-2014 comparisonTable 4: Imports 2013-2014 comparisonTable 5: Zimbabwe’s TariffsTable 6: Rank of Zimbabwe Business IndicatorsTable 7: National Production figures all Agricultural commoditiesTable 8: Approximate tonnage of Maize used by the larger milling companiesTable 9: Zimbabwe potato production in global perspectiveTable 10: Estimated domestic demand for industrial CassavaTable 11: Cotton and Soya beans production 2013-2014Table 12: Market share of the operational companiesTable 13: Export values development of Flowers 2010-2013Table 14: Domestic and export produceTable 15: Livestock numbers division by provinceTable 16: Monthly milk production in the period 2010-2014Table 17: Broiler meat production 2012-2013Table 18: Aquaculture production figures for Zanzibar, Zambia and Zimbabwe

Map 1: Zimbabwe Agro-Ecological ZoneMap 2: Cotton Growing Area

AGRONYMSACP Agricultural Common PolicyACP African Caribbean PacificADMA Agricultural Dealers and Manufacturers’ AssociationAGRA Alliance for Green Revolution in AfricaBAZ Bankers Association of ZimbabweBIZ Bio-Innovation ZimbabweCAAZ Civil Aviation Authority of ZimbabweC2C Cotton to ClothingCFU Commercial Farmers UnionCGA Cotton Ginners AssociationCRI Cotton Research InstituteCOTTCO Cotton Company of ZimbabweCZI Confederation of Zimbabwe IndustriesCOMESA Common Market for Eastern and Southern AfricaDANIDA Danish International Development AgencyDfID Development for International DevelopmentDZPL Dairy-board of Zimbabwe Private LimitedEPA Economic Partnership AgreementEPZ Export Processing Zone AuthorityEU European UnionFDI Foreign Direct InvestmentFTA Free Trade AgreementGAP Good Agricultural PracticesGDP Gross Domestic Product


GMB Grain Marketing BoardGMO Genetically Modified OrganismGoZ Government of ZimbabweHa HectareHCC Harare Chambers of CommerceHPC Horticultural Promotion CouncilHRC Horticultural Research CouncilIDP Industrial Development PoliciesITC International Trade CentreITCZ Inter Tropical Convergence ZoneLAIFEZ Leather and Allied Federation of ZimbabweLIZ Leather Institute of ZimbabweMFI Micro Finance InstitutionMoAMID Ministry of Agriculture Machinery and Irrigation DevelopmentMoIC Ministry of Industry and CommerceMoF Ministry of FinanceMt Metric tonNGO Non-Governmental OrganisationNRZ National Railways of ZimbabweOXFAM-Novib Dutch Development Organisation Branch of Oxfam InternationalSADC Southern African Development CommitteeSAFEX South African Futures ExchangeSEZ Special Economic ZoneSNV Netherlands Development OrganizationSPS Sanitary and Phytosanitary StandardsSTERP Short Term Emergency Recovery ProgramUNDP United Nations Development ProgramUSAID United States Agency for International DevelopmentUS$ United States DollarVAT Value Added TaxWFP World Food ProgramZADF Zimbabwe Association of Dairy FarmersZADT Zimbabwe Agricultural Development TrustZCFU Zimbabwe Commercial Farmers’ UnionZEPARU Zimbabwe Economic Policy and Research UnitZFU Zimbabwe Farmers UnionZGMA Zimbabwe Grain Millers AssociationZIA Zimbabwe Investment AuthorityZIMACE Zimbabwe Marketing Commodities ExchangeZIMRA Zimbabwe Revenue AuthorityZNCC Zimbabwe National Chambers of CommerceZNHPA Zimbabwe National Horticulture Producers AssociationZW$ Zimbabwe Dollar


EXECUTIVE SUMMARY

Zimbabwe has favourable conditions for agriculture and had a flourishing agri-business. Forgood reason the country was called the ‘Breadbasket of Africa’. In 2000 a chaotic and violentland reform programme was initiated resulting in the collapse of the agribusiness sector,hyperinflation and a sharp decline in the economy. After 2009, the economic situation hasimproved because of the replacement of the Zimbabwe Dollar (ZW$) with a multi-currencyregime making the US$ the major currency. The EU is already the second largest trading partnerto Zimbabwe and trade has doubled since 2009, with a large trade surplus for Zimbabwe.

The EU and the Government of the Netherlands are dedicated to support further stabilisationand development of the economy of Zimbabwe which still is a far cry from what it was before2000. The Royal Netherlands Embassy (RNE) in Harare has commissioned Brightface (Pvt) Ltd toresearch investment and trade opportunities for Dutch business in the agribusiness value chainsin Zimbabwe.

The Zimbabwean business environment can be defined as high risk and possible high reward.Foreign businesses have a comparative advantage over domestic business because of liquidityconstraints resulting in high cost for finance. Zimbabwe has the legal framework andinfrastructure to enable the creation of a stable business climate. Zimbabwe is in the process ofliberalising international trade. It will liberalize 80% of her imports from the EU by 2022 (45% by2012 with the remaining 35% of imports being liberalized progressively until 2022).

Zimbabwe is a member of the World Trade Organisation (WTO) and part of the SADC andCOMESA free trade areas and signed the Africa-Caribbean-Pacific-EU Cotonou Agreement (ACP-EU).The country has signed a Bilateral Investment Promotion and Protection Agreement (BIPPA)but this agreement has been violated by the country. Zimbabwe also has a tax treaty with theNetherlands.

Foreign business is free to operate and invest in Zimbabwe. The Indigenisation and EconomicEmpowerment Act (IEE) stipulates that approval from the Minister responsible for Indigenisationand the Minister responsible for Economic Planning is required to invest in certain sectors.Furthermore, business with a value of over US$ 500,000 has to be majority owned by a localpartner. It is indicated but not (yet) included in any Act - by Government that implementation ofZimbabwe’s IEE laws and regulations will be undertaken under a sector specific approach.

All agricultural land has been nationalised after 2000 and redistributed. However thebeneficiaries from the land reform do not have title deeds and are not in the position to transfertheir land rights legally. Currently the government preparing an agriculture land redistributionsystem based on 99 years land lease agreement. The future status of the current beneficiaries ofthe land reform programme is uncertain. With the land reforms, experienced farmers werereplaced with a larger amount of less experienced farmers. Companies provide technicalassistance to the new farmers to make them more productive. Expertise for the provision oftechnical assistance is ample available in the country as a number of former white farmers nowwork as farming consultant.

The value chain approach is used to identify business opportunities in the Zimbabweanagribusiness sector. The table below summarises the main opportunities and risk in theagribusiness subsectors.


Sub-sector Opportunities Risks

Grain Local demand exceeds local production;

Limited domestic milling capacity inwheat.

History of government interference inthe grain subsector;

Yield fluctuations;

Poor agricultural practices;

Cheap foreign imports.

Tuber crops Growing industrial demand for cassava;

Good physical conditions for tubercrops;

Processing of tuber crops.

Poor agricultural practices;

Oilseeds Recapitalisation of oilseed processingindustry;

International market for medical andcosmetic cotton wool products.

Poor agricultural;

Farmers move away from oilseedsbecause of low margins.

Horticulture Export of fresh and frozen products tonorthern hemisphere.

Enabling environment not favouringcomplex logistics process;

Future air freight connectionsuncertain;

Currency exchange fluctuations;

Misappropriation of plantations.

Livestock Organic and fair trade meat;

Domestic supply falling short;

Canning of beef for domestic market;

Demand for processing machinery andequipment;

International demand for high valuecrocodile and ostrich leather products.

Domestic consumers cannot afford tobuy meat;

Enabling environment not favouringcomplex logistics process required forexport.

Within the subsectors, Brightface has identified and assessed Zimbabwean agribusinesscompanies interested to partner with Dutch companies. Information on these opportunities isindicted in the report. Prospects range from large industrial conglomerates to small greenfieldoperations. Important in the selection of the companies listed is that they are undermanagement over reputable business people. All companies listed have managed to remain inbusiness and profitable or started operations under difficult circumstances, includinghyperinflation and occasional external attempts to misappropriate company assets.

Agribusiness companies indicate the following reasons to partner with Dutch business:

o Equity partner for downstream expansion in value chain;o Lease of crop spraying planes;o Technical partner for vegetable seed development;o Knowledge, equity and export partners to develop export opportunities in horticulture;o Development and export of organically grown fair trade beef from Zimbabwe;o Implementing partner for fair trade and organic agricultural production in Zimbabwe;o Equity partner for small innovative agribusiness projects in Zimbabwe;o Equity and export partner cotton wool products for medical use and use in cosmetics;o Capital for agricultural production (out-grower scheme development).


1 INTRODUCTION

Zimbabwe has proven to be an excellent country for agribusiness. The country has good soils and isblessed with a well-developed riverine system. It has a sub-tropical climate moderated by altitude. Itslocation at the southern hemisphere allows anti-cyclical seasonal production of crops for northernexport markets, including Europe. Zimbabwe used to be a major producer, processor and exporter ofa wide variety of agricultural products, including tobacco, horticulture and cotton. In particular thehorticulture export sector was unparalleled in Africa with Dutch investors and entrepreneurs playinga leading role developing it. For good reason the country was called ‘Breadbasket of Africa’.

Since 2000, Zimbabwe has dominated the headlines for a number of reasons, like the worseningconditions of standard of living of its population, a land reform programme that did not adhere toacceptable norms of transfer of property, a series of contested elections, hyperinflation and a declinein the economy. Since 2009, the political and economic situation has improved slightly. Early thatyear, the Zimbabwe Dollar (ZW$) was replaced with a multi-currency regime and the US$ became themajor currency. Furthermore, price controls were lifted and the economy was liberalised. The EU andthe Government of the Netherlands are dedicated to support further stabilisation and developmentof the economy of Zimbabwe which still is a far cry from what it was before 2000.

However there are emerging opportunities in agribusiness in this country. Therefore the RoyalNetherlands Embassy (RNE) in Harare has commissioned Brightface (Pvt) Ltd to research businessopportunities for Dutch business in the agribusiness value chains in Zimbabwe. The results of thisresearch are presented in this report.

It has to be noted that Zimbabwe is in a transition stage. Compared to the period 2000 – 2008, theeconomic and political situation has improved dramatically. From our research it also was observedthat still entrepreneurs from all races and origins have managed to keep their business operationsgoing and profitable under difficult circumstances resulting from hyperinflation, insecurity aboutbusiness assets and occasionally sheer intimidation.

The Zimbabwean business environment can be defined as high risk and possible high reward. Foreignbusiness has a comparative advantage over domestic business because of domestic liquidityconstraints resulting in high cost for domestic finance.

1.1 GOALS AND OBJECTIVES

The goal of the research is to inform Dutch business about the state of affairs and prospects ofagribusiness development in Zimbabwe and to identify, analyse and describe economic cooperationand investment opportunities.

The objectives of the research are:

General description of the political, economic, and social situation and developments inZimbabwe;

General information about agricultural and food production, rural development, physicalenvironment and knowledge systems;

Characteristics of doing business in Zimbabwe;

Understanding in the food market and exports;

Identification of the actors in agribusiness value chains ranging from producers, processors todistributors, wholesalers, retailers, informal traders, importers and exporters;


Introduction of the main agricultural value chains – main sectors, role of large producers andsmall-holders, value chain development, food processing industries;

Analysis of the major and promising agricultural value chains;

Analysis of the major livestock value chains;

Identification of business and Investment opportunities for Dutch companies in theagriculture value chains.

1.2 METHODOLOGY

The value chain approach is used to inform Dutch business on the Zimbabwean agribusiness sector. Avalue chain depicts a set of actors and activities that bring a product from conception to its end usein a particular industry. Within agribusiness, these stages include input supply, production,procession, distribution, marketing, wholesale, retail and consumption and these are linked throughdifferent relationships. The term value chain has been adopted because it is observed that at eachstage, value is being added to the product or service.

Figure 1: value chain model

Source: ACDI/VOCA

Value chains are interrelating with the enabling environment at a national and international level andwith the supporting markets as well.

First step in the value chain research is the division of the agribusiness sector in the most importantand promising subsectors as well as a research of the enabling environment and supporting markets.Secondly, the value chains of these subsectors have been researched in more detail, resulting in thedetermination of the main players and bottlenecks within these subsectors.

The main players and bottle necks identified are used as input for identifying business opportunitiesfor Dutch companies. The following approach has been used:

Long list of companies operating in the value chains;

Compilation of short list of possible business partners based on the following criteria:


o Role in the value chain (value added);o Business performance;o Business reputation;o Size of operations;o Business risks.

Assessment of shortlisted companies by way of personal visits and desk research.Assessment criteria:o Interest to partner with Dutch business;o Business risks;o Possible fit;o Added value of collaboration.

The research is based on desk research and stakeholder interviews. A source reference list, a list withuseful internet sites as well as a list of interviewees is included in the annexes.

1.3 STRUCTURE OF THE REPORT

Chapter two provides insight on the national and international enabling environment by providing ageneral profile of Zimbabwe by considering the physical geography, historical context of the country,political developments and economic developments, including international economic relations

Chapter three pays attention to both the enabling environment and supporting markets byconsidering the various aspects of doing business in Zimbabwe.

The agribusiness value chains are considered in Chapter 4. The most important and promisingsubsectors are presented in the chapters thereafter, including the main players and bottlenecks.

Opportunities for Dutch business in the agribusiness value chains are presented in chapter 10.

1.4 ACKNOWLEDGEMENTS

Brightface wants to thank the Royal Netherlands Embassy in Harare to make this research possible.Furthermore we would like to thank the companies, governmental authorities, NGOs, otherorganisations and the individuals that supported our research with providing information andinforming us on additional sources.

1.5 DISCLAIMER

The information given here is a guide and as such it is not exhaustive. It is based on conditionsexisting at the date of publication. Readers are strongly advised to consult with professionals in therelevant fields of interest prior to relying on any information contained in here.


2 GENERAL PROFILE OF ZIMBABWE

2.1 INTRODUCTION

The Republic of Zimbabwe is a landlocked country located in Southern Africa. Compared to many

African countries, Zimbabwe is relatively small but with a total land area of 386,850 sq. km it is larger

than the Netherlands and Germany combined. It is estimated that the total population of Zimbabwe

is about 13 million people. Three or more millions of Zimbabweans emigrated abroad, most of them

to South Africa and the United Kingdom.

Table 1: Fact and figures

Zimbabwe has a sub-tropical climate moderated by altitude. The rain season is stretching from

November until March and is relatively short. The whole country is influenced by the Inter-Tropical

Convergence Zone (ITCZ) in January which can lead to significant draughts when poorly defined.

However the country is blessed with a well-developed riverine system and good soils making it

excellent for agricultural development.

2.2 PHYSICAL GEOGRAPHY

Zimbabwe is a sub-tropical country with one rainy season, November to March with an average

rainfall of 657 mm/year. It is geographically characterised by an extensive high inland plateau called

the Highveld lying above 1,200 m. This plateau drops northwards to the Zambezi basin and similarly

but more gradually southward to the Limpopo river through the Mid-veld (600 – 1,200m) and the

Low-veld which is below 600m.


Zimbabwe is divided into 8 administrative provinces, while the two major urban centres, Harare and

Bulawayo are also designated provinces in their own right.

The three Mashonaland Provinces (Mashonaland Central, Mashonaland West and Mashonaland East)

are located on the Highveld and receive good rainfall during the rainy season making them most

suitable for agriculture. Masvingo is the most populous province and is partly located in the hotter

and dryer Low-veld.

The Limpopo and Save river systems supply sufficient water for extensive irrigation systems. Also in

the southern region are Matabeleland North and Matabeleland South. Both of these provinces are

sparsely populated since they are semi-arid areas as is Midlands province which is a key mining area.

Highest rainfall is in Manicaland which also is noted for its beautiful scenery, including several

mountain ranges.

In the map below the administrative division and the Agro-Ecological Zones are presented.

Over 80% of rural households live in natural regions III, IV and V. The rainfall pattern in these areas is

erratic, making dry-land cultivation risky and chances of food insecurity high. Global climate changes

have implied greater variability, exacerbating recurrences of drought and flood situations. In this

environment, investment in irrigation infrastructure becomes an essential mitigating factor that

guarantees productivity, farm output, sustainability and viability. In the table below the Agro

Ecological Zones are presented.


Table 2: Explanation of Agro Ecological Zones

Agro Ecological Zones Rainfall perannum in mm

Characteristics and typical farming activities

Region 1:Low temperatures,high altitude and steepslopes.

> 1,000 Plantations owned the State through the Forestry Commission and bymultinationals and small owner-operated plantations and sawmills. Farmingactivities:

Dairy farming;

Forestry;

Coffee and tea production;

Deciduous fruits: bananas and apples;

Horticultural crops, such as potatoes, peas andother vegetables;

Open Field Flowers, such as proteas.Region 2:High Altitude

750-1000, fairlyreliable

Traditionally large-scale commercial farming, highly mechanized farms of 1000-2 000 ha under freehold title and owner-operated. Subdivided after 2000land reforms and less productive. Farming activities:

Flue-cured tobacco, maize, cotton, wheat,soybeans, sorghum, groundnuts, seed maizeand burley tobacco;

Irrigated crops like wheat and barley grown inwinter;

Intensive livestock production based onpastures and pen-fattening utilizing cropresidues and grain. Main livestock productionsystems include beef, dairy, pig and poultry.

Region 3:High temperatures,mid altitude

500 – 750,fairly reliablebut mid-seasondry spells

Predominant farming system is smallholder agriculture. Large-scale farmingaccounts for 15 percent of the arable land production, most of the land beingused for extensive beef ranching (Roth, 1990):

Smallholder agriculture in the communalfarming areas is under relatively intensivecropping systems.

Drought-tolerant crops: maize (staple foodcrop) and cotton (cash crop);

Semi-intensive livestock farming based onfodder crops.

Suitable for the production of groundnuts andsunflowers as cash crops.

Region 4:High temperatures,low-lying areas

450-650 mm,severe dryspells

Unsuitable for dry land cropping:

Small-holder farmers grow drought-tolerantvarieties of maize, sorghum, pearl millet(mhunga) and finger millet (rapoko).

Cattle production under extensive productionsystems and wildlife production.

Region 5:High temperatures,areas below 900m.

< 650 mm anderratic

To dry for crop production. Suitable for ranching, wild life and game reserves.


2.3 HISTORICAL CONTEXT

The Zimbabwean business climate is defined by the current political and socio-economic situation

resulting from past events. A basic understanding of the history of Zimbabwe is essential to operate

successfully in Zimbabwe.

2.3.1 Pre Colonial Era

There have been many civilisations in Zimbabwe as is shown by rock carvings and ancient stone

structures.

The Shona people as they are today are a fragmented horde of tribes with very tenuous bonds of

unity between them. Most Shona people identify with a particular clan rather than with the Shona

group as a whole

In the early 19th Century, at the height of power of Tshaka, king of the Zulu, many of his subjugated

chiefs took flight in an attempt to form their own dominions. The result was a period of terror

throughout central southern Africa known as Difaqane, or "Time of Calamity", and a scattering of

various tribes from the Highveld. Ultimately these dominions were united in the Matabele Kingdom

which controlled most of present day Zimbabwe and parts of Mozambique. The current Ndebele

people (called Matabele before) are the result of this Zulu-empire break away and intermarriages

with the Shona.

2.3.2 British Colonial Rule, UDI and Civil War

In 1888, British mining magnate Cecil Rhodes obtained a concession for mineral rights from the

Matabele king. Eventually the Matabele Kingdom and surrounding areas were proclaimed a British

sphere of influence and was named Rhodesia after Cecil Rhodes in the same year. The area attracted

a significant number of European emigrants in the decades afterwards. In September 1953, Southern

Rhodesia, as it was called, then became part of the Central African Federation with the territories of

the current nations Zambia and Malawi. The federation was already dissolved at the end of 1963

with the northern part becoming the independent nations of Zambia and Malawi. The European

electorate in Rhodesia, however, showed little willingness to accede to African majority demands for

increased political participation and progressively replaced more moderate party leaders.

In April 1964, Prime Minister Winston Field, accused of not moving rapidly enough to obtain

independence from the United Kingdom, was replaced by his deputy, Ian Smith, but Rhodesia was

refused sovereignty under Britain's new policy of "no independence before majority rule"

("NIBMAR").

The Unilateral Declaration of Independence (commonly referred to as UDI) was a statement

adopted by the Cabinet of Rhodesia on 11 November 1965, announcing that Rhodesia now regarded

itself as an independent sovereign state. Britain, the Commonwealth and the United Nations all

deemed Rhodesia's UDI illegal. Economic sanctions, the first in the UN's history, were imposed on the

breakaway colony. Amid near-complete international isolation, Rhodesia continued as an

unrecognised state until 1980.


The Land Apportionment Act of 1930 divided the country into the Reserves (land exclusively for occupation

by Africans); Alienated Land (land exclusively for White occupation, on which Africans could live only as

employees); and Native Purchase Areas (land where African farmers could gain limited ownership of farms).

This Act was not implemented on a large scale during the 1930s. Under the LAA 1930 a large, exclusively

European area was declared which consisted of 49 million acres and comprised over half the total farming

land in the country. As a sort of compensation, Africans were given the right to freehold tenure on the newly

created Native Purchase Areas, which were located adjacent to the Reserves. Under the LAA 1930, the NPAs

covered 7, 5 million acres, although some 4 million were of little use because they lay in remote areas of the

country and were unsuitable for farming. The Reserves totaled 21, 6 million acres. The 49 million acres were

owned by 4,000 farmers who represented 1% of the population .

The UDI era was characterized by a civil war pitting three forces against one another: the Rhodesian

government, under Ian Smith; ZANLA, the military wing of Robert Mugabe's Zimbabwe African

National Union (ZANU) backed by communist China; and the ZIPRA of Joshua Nkomo's Zimbabwe

African People's Union supported by the former Soviet Union and its allies.

After long negotiations a settlement was reached between the opposing forces putting the country

temporarily under British control and elections were held under British and Commonwealth

supervision in March 1980. ZANU won the election and Mugabe became the first Prime Minister of

Zimbabwe on 18 April 1980, when the country achieved internationally recognized independence

and formally was named Republic of Zimbabwe.

2.3.3 Zimbabwe Independence: from Bread Basket to Basket Case

Shortly after independence, the new government led by Robert Mugabe dropped its communist

aspirations and opted for a policy of reconciliation with former opponents in exchange for economic

development and the promise of external foreign aid to rebuild the war-ravaged country. The about

4,000 farmers with European descents prospered as never before. Between 1980 and 2000,

Zimbabwe also received substantial financial assistance from Western governments, notably from

Britain. British support included a "land resettlement grant" that promoted the purchase of European

owned land to be redistributed under the native population. Land redistributed through this

arrangement nowadays are called Old Resettlement areas.

By 1990, Zimbabwe had achieved impressive results in the area of primary health and education for

all and had become the envy of many other post-colonial states. In food security, the country had

been assigned the responsibility of ensuring that there are enough food stocks within the sub region

by SADCC hence the term the “bread basket” of Southern Africa region.

The economic meltdown began in the second half of the 1990’s and increased in intensity in 2000.

Initiator to the meltdown was budget problems due to demands for retirement entitlements by well

organised former liberation fighters (war-vets) and a costly opportunistic war in DRC. Budget

challenges were addressed by monetary easing but that was disrupting the economy (hyperinflation)

and resulting into civil unrest. The white farming and business community became politically involved

and joined opposition forces.

The ruling ZANU PF party was able to neutralize a part of the challenging forces by allowing,

encouraging and facilitating the war vets to take over white farms to buy off their compensation

claims resulting in the collapse of the commercial farming sector, the backbone of the economy.

The resulting social crisis is characterised by the decline in housing, health and education and erosion

of household incomes leading to an increase in cases of food insecurity and general vulnerability.


2.4 POLITICAL DEVELOPMENT

The Movement for Democratic Change (MDC) was the first political party that was a real threat to

the hegemony of ZANU PF. Results of the 2000, 2004 and 2008 elections were not recognised by the

International Community as they were marred by violence against the MDC opposition and judged

not to be free and fair. After the 2008 elections and under international pressure, the MDC (now

split in two separate parties) and ZANU PF started an inclusive government (Government of National

Unity – GNU) to begin to rebuild the country.

ZANU PF regained exclusive power again by a land-slide victory in the 2013 elections. The United

States, European Union (EU), Australia and others expressed concerns about the credibility of the

polls. On the other hand, the Southern African Development Community (SADC), the Common

Market for Eastern and Southern Africa (COMESA) and the African Union (AU) endorsed the

outcome.

Many international actors want to bring closure to more than 17 years of political crisis in Zimbabwe.

In February 2014 the EU agreed to suspend most restrictive measures on Zimbabwe which were

initiated after the political violence in 2000. Only the arms embargo and travel restrictions on

Mugabe and his wife were maintained. The subsequent invitation of President Robert Mugabe to

attend the fourth EU-Africa summit in Brussels in April 2014 signalled both a response to African

pressure and the desire on the part of the EU to normalise relations.

2.5 ECONOMIC DEVELOPMENT

In the past 10 years, Zimbabwe has dominated the headlines for a number of reasons, like the

worsening conditions of standard of living of its population, a land reform programme that did not

adhere to acceptable norms of transfer of property, a series of contested elections, hyperinflation

and a decline in the economy.

2.5.1 Economic Meltdown and Hyperinflation

As indicated above, the economic meltdown began in the late 1990’s but increased in intensity in

2000 with the introduction of the Fast Track Land Reform Programme (FTLRP) when the about 4,000

experienced and committed European white commercial farmers were evicted and replaced with

mainly inexperienced indigenous farmers, resulting in the collapse of the commercial agriculture

value chains. Despite the large increase in the number of farmers, there has been reduced food and

cash crop production due to late and poor land preparation because of lack of tillage capacity,

unsustainable financing mechanism for the sector and the generally unfavourable macro-economic

environment.

As such, the main staple cereals (maize, wheat and sorghum) and the high nutritional value

commodities (meat, milk, groundnuts and soya beans as well as oilseeds) have been in short supply.

The government responded with a price control policy on basic food products and the Grain

Marketing Board (GMB - parastatal) became the exclusive buyer of any grain produced at set prices.

This policy combined with hyperinflation virtually terminated the formal basic food markets as

centrally set prices could not catch-up with inflation making basic food crop production, processing,

wholesaling and retailing commercially unviable.

Also the cyclical linkages of support and cooperation that have traditionally existed between the

rural and urban households that involved cash remittances from urban to rural and grains from rural

to urban sector were under severe threat because of the ban on grain trade outside the GMB. The


ultimate result has been 50% reduction in agricultural production. The implications for downstream

industries and unemployment have been negative. Zimbabwe’s gross domestic product (GDP) shrunk

by a cumulative 40% between 1998 and 2006.

It has been associated with the shrinking of industrial activity, and consequent high unemployment

rates (estimated to be in the range of 70-80% of the total labour force). The economic decline in turn

affected the social reproduction capacities of both urban and rural communities. Formal sector urban

employment shrunk from 3.6 million in 2003 to 480,000 in 2008 (Source: Mail and Guardian 18

January 2009) and even those who managed to retain their jobs were in most cases receiving wages

below the poverty datum line, mostly eroded by hyper inflationary environment.

The social crisis is characterised by the decline in housing, health and education and erosion of

household incomes leading to an increase in cases of food insecurity and general vulnerability.

In 2008, the economy came to a virtual standstill. Foreign currencies replaced the Zim$ in day-to-day

transactions. In the second half of the year the RBZ found peace with the parallel market and allowed

designated shops to accept US$. On 1 February 2009, the Zim$ was officially suspended and the

multi-currency regime was introduced with the US$ and ZAR as main currencies. The day before one

US$ bought ZWD 2.55 octillion (255*1025).

2.5.2 Economic Stabilisation

After the introduction of the multi-currency regime and the formation of the GNU, the economy

started to stabilize.

Figure 1: Zimbabwe GDP development in the period 2004 – 2014 (in billion US$)

The economy bottomed out in the year 2009 because of lack of liquidity. Companies had to start

from zero balance sheets and had virtually no access to foreign capital. International investors

refrained from investing in Zimbabwe because of its poor track record in investment security and

followed a sit and wait approach.

Also the Bretton Woods Institutions (IMF, World Bank) did not engage Zimbabwe before certain

conditions were met and reforms were taken, including the restructuring of outstanding debt.

International Banks operating in Zimbabwe (Barclays, Stanbic and Standard Chartered) did not

expand their portfolios because of missing investor guarantees and continued to focus on continuing

conserving their operations awaiting better times.


The GDP started to grow rapidly resulting from the continuing cash remittances from the Diaspora

abroad which started to contribute to the formal economy and funds flowing from the informal into

the formal economy, in particular from mining.

In agriculture, two major crops (tobacco and sugar cane) have shown remarkable recovery in

Zimbabwe. Tobacco production fell to a low of 48.7 million kg in 2008 but has recovered significantly

to 166.5million kg in 2013 and is projected to surpass the record of 236million kg done in 2000 in the

year 2016. Most small scale farmers have moved from cotton to tobacco.

Sugar cane has also recovered significantly in the low-veld due to the entry of new growers. The

current manufacturing of ethanol gives it a ready market and good prospects in future.

2.5.3 External Sector

Exports

Zimbabwe’s main exports are tobacco (23 percent of total exports) and nickel (20 percent). Others

include: diamonds, platinum, ferrochrome, and gold. Zimbabwe main export partners are: South

Africa, China, Congo and Botswana.

During the month of February, exports decreased by 31% to record US$192.3 million. The decrease in

exports has been attributed to the declining productivity. Cumulatively, the exports for the two

months stood at US$470.5 million. Minerals contributed the bulk of exports in the period under

review. The Table below shows monthly exports for the period, January to February 2014.

Table 3: Exports: 2013 & 2014 Comparisons

Month 2013 2014

January 279,555,180 278,192,098

February 279,047,033 192,333,567

Total 558,602,213 470,531,567Source: ZIMSTAT, 2014

Exports bottomed out in April 2014 and have increased afterwards. The figure below presents the

export development in the period July 2013 – July 2014.

Figure 3: Zimbabwe exports

Imports


During the month of February, imports declined by 2% from US$487.5 million to US$478.4 million.

Cumulatively, the imports bill as at February 2014 stood at US$966.3 million. The decline in imports

(especially raw materials and equipment) can be attributed to the low activity in the productive

sectors. Foodstuffs, motor vehicles and fuel contributed the bulk of the imports in the month.

The Table below shows monthly imports for the period, January to February 2014.

Table 4: Imports: 2013 & 2014 Comparisons

Month 2,013 2014

January 606,712,339 487,521,513

February 499,162,650 478,414,079

Total 1,105,874,989 966,308,062Source: ZIMSTAT, 2014

The main imported goods are industrial supplies (39.1%); machinery (26.4%); fuels (11.3%);

transportation equipment (11.3%) consumer goods (6.8%); food (4.5%); and other (0.6%). Main

importing partners are: South Africa, United Kingdom, Germany, Japan, United States, China (incl.

Hong Kong), Malawi, Italy, Netherlands and Mozambique.

In the chart on the next page, the consolidated food import figures and figures separated by

application are presented for the first half of 2014.

Figure 4: Imports by Economic Category


Source: ZimStat 2014

2.5.4 Financial Sector

Loans and Advances

Of the total banking sector loans and advances, individuals, agriculture and distribution were the

main beneficiaries, receiving 20%, 19% and 17% respectively.

Figure 5: Distribution of Loans and Advances

Source: Reserve Bank of Zimbabwe, 2014

During the month of February 2014, loans and advances to the private sector increased by 1.7% from

US$ 3.566 billion in January 2014 to US$ 3.626 billion in February 2014.

Deposits

Imports classified by Broad Economic Category

(BEC);US$

05

101520253035404550

January

February

March

AprilM

ayJune

Mill

ion

s

2014

Food and beveragesPri maryMai nl y for i ndustryMai nl y for hous ehol d consumptionMai nl y for i ndustryMai nl y for hous ehol d consumption


The Chart below shows the growth rate in broad money as well as the loan to deposit ratio since

2011.

Figure 6: Broad Money (US$ Millions)

Source: Reserve Bank of Zimbabwe, 2014

Money supply growth in February 2014 increased by 3.4%, from the US$ 3.888 billion recorded in

January 2014 to US$ 4.021 billion. On an annualised basis money supply grew moderately by 5.6%

compared to 12.91% recorded over the same period last year.

2.5.5 International Economic Relations

Until 1991, Zimbabwe imposed stringent controls on trade, foreign currency flows and the exchange

rate. Economic reforms in the area of trade resulted in the abolition of quantitative controls,

reduction and harmonization of tariffs and duties, removal of export incentives, phasing out of the

import licensing regime, elimination of foreign currency controls, reduction of tariffs and removal of

surtax.

Regional

Zimbabwe is part of the SADC and COMESA. All COMESA and SADC countries have been liberalizing

their trade and foreign exchange regimes unilaterally under market economic reforms supported by

the IMF and the World Bank.

To stimulate trade integration, SADC members in 2000 started to implement a Trade Protocol aimed

at establishing a free trade area within eight years from its ratification. In recent years, there has

been a marked shift in Zimbabwe’s trade from EU towards SADC, and exports to the region now

account for about a 30 percent of Zimbabwe’s total exports, while imports from SADC are over 40

percent of the total import bill.

Zimbabwe supplies a variety of products to SADC, chief among them tobacco, cotton, oil cake and

soya beans, maize, live bovine animals, coniferous wood, cotton seeds, light manufactures and

imports in exchange fuels, vehicles, explosives, chemicals machinery, plastics, paper and steel.


In November 2000, COMESA launched its free trade area with duties on a wide range of goods

reduced to zero. Contrary to Zimbabwe’s situation in SADC, trade with COMESA countries is

characterized by a huge surplus trade balance that has existed since COMESA was founded.

Zimbabwe’s major imports from COMESA include food and live animals, crude materials,

manufactures, beverages and tobacco, while its exports are dominated by food products,

manufactures, chemicals, transport equipment and machinery.

South Africa is the major trading partner for Zimbabwe, and trade between the two countries grew

at a much faster rate in the 1990s following removal of international sanctions imposed on apartheid

South Africa. The Trade Agreement between South Africa and Zimbabwe that entered into force on

30 November 1964 accords preferential treatment to goods and services in the form of rebates on

duty and duty-free market entry. Some products including textile and clothing are subject to quotas

and rules of origin when entering the two markets.

Agreements with Botswana and Namibia are based on the same framework. Goods and services are

allowed tariff- and surcharge-free between Zimbabwe and Botswana and between Zimbabwe and

Namibia. In each of the two agreements, access of goods and services is subject to a 25 percent

minimum local content. Under the Botswana-Zimbabwe agreement, certain classes of textile and

clothing products from Botswana are not allowed into Zimbabwe, to reduce competition.

European Union

In the four consecutive years from 1994, Zimbabwe enjoyed a balance of trade surplus in its trade

with the EU. Exports to the EU during this period accounted for about 36 percent of the country’s

total exports and cover both traditional and non-traditional product lines.

Major agricultural export products to the EU were tobacco, cotton, meat products, tree plants, and

cut flowers. Under the Convention’s Beef and Veal Protocol, Zimbabwe had a preferential tariff quota

that allowed it to export 9,100 tonnes of beef into the EU annually. Under the Sugar Protocol,

Zimbabwe’s preferential tariff quota stood at 30,225 tonnes annually supplemented by a variable

Special Preferential Sugar quota. Zimbabwe also benefited from the STABEX fund for supporting

export earnings owing to a decline in prices of commodity exports.

Zimbabwe – EU relations deteriorated after 1998 but with the installation of the Inclusive

Government started developmental programs aligned with the strategies of the Government.

The decision on the suspension of the appropriate measures on 23 July, 2012 is a significant step in

the process towards further normalized relations between the EU and Zimbabwe. The EU has stated

that it is looking forward to further deepening relations with Zimbabwe, evolving in the longer term

towards a partnership with potentially increasing emphasis on trade and investment. The EU is

already the second largest trading partner to Zimbabwe and trade has doubled since 2009, with a

large trade surplus for Zimbabwe.

Zim-EBIC

On the 1st of August 2014, the EU inaugurated the Zimbabwe-EU Business Information Centre(Zim-EBIC) at ZimTrade at Mount Pleasant Business Park in Harare. It will assist exporters to easilyaccess EU market information. An important component of Zim-EBIC is a virtual library withdatabases that include, amongst others, EU-Zimbabwe trade statistics, linkages with EUChambers of Commerce and information on EU exporters and importers.

http://eeas.europa.eu/delegations/zimbabwe/eu_zimbabwe/political_relations/restrictive_measures/index_en.htm

http://eeas.europa.eu/delegations/zimbabwe/eu_zimbabwe/trade_relation/index_en.htm

http://ec.europa.eu/trade/creating-opportunities/trade-topics/investment/


2.6 RURAL DEVELOPMENT

Zimbabwe’s economy is agriculture based and rural employment comes from agriculture. Agriculture

provides market to labour and capital. As major development donors only provide limited funding to

governmental development projects, and government itself hardly has money for investments, Non-

Governmental Organisations (NGOs) have played a pivotal role in the development of rural areas.

The areas covered by these NGOs have been in small holder farmer livestock development,

improvement in crop production, inputs availability, conservation farming and nutritional gardens.

Various NGOs target organic farming and capacity building that improve the livelihoods of rural

people enabling them to improve crop production. After the installation of the Government of

National Unity, international development focus has shifted from emergency aid to capacity building

and marked based solutions promoting entrepreneurship in rural areas.

The Fast Track Land Reform has benefited a number of rural farmers as these have been allocated

land and some of them have moved into more lucrative cash crops (tobacco and sugar cane)

resulting in improved incomes. However these new farmers have no title deeds and subsequently are

depending on government support for inputs.

The Department of Agricultural Technical and Extension Services (AGRITEX) plays a critical role in

rural development, with AGRITEX field officers providing agricultural knowledge. AGRITEX

collaborates with NGOs and companies contracting smallholder farmers. The challenges faced by

farmers have been lack of inputs such as fertilizer, chemicals, and seeds. It has also been difficult to

access capital from the banks as these farmers do not have collateral security required by banks.

3 DOING BUSINESS IN ZIMBABWE

3.1 INTRODUCTION

Zimbabwe has a reputation of having a challenging business environment. The country is in theprocess liberalising its markets and business can import and export relatively freely to othercountries. The laws governing business in Zimbabwe have their origin in Roman-Dutch law,borrowing from English law where necessary. Operating and starting a business in Zimbabwe is quitestraight forward. The country has signed a Bilateral Investment Promotion and Protection Agreementand a tax treaty with the Netherlands.

It has to be noted that the country is still in the process of recovery from a long economic andpolitical crisis but the government has expressed its ambition to normalise the business andinvestment climate and some progress has been made. Zimbabwe has the legal framework andinfrastructure to enable the creation of a stable business climate.

Even though Dutch owned assets are in theory protected by the BIPPA, in practice most investmentsrelated to land have in fact been contested by individuals and groups in Zimbabwe. Although theobligation has been acknowledged by the Zimbabwean government, no compensation has been paidyet for misappropriated land from Dutch investors.

3.2 MARKET ACCESS

Zimbabwe is in the process of liberalising international trade. It is a member of the World TradeOrganisation (WTO) and part of the SADC and COMESA free trade areas and signed the Africa-Caribbean-Pacific-EU Cotonou Agreement (ACP-EU).


This agreement provides nonreciprocal tariff preferences to ACP countries. ConsequentlyZimbabwean exporters have preferential market access to the EU. Zimbabwe closed bilateral tradeagreements with neighbouring countries, like Botswana, Namibia, Malawi, Zambia and South Africa.

3.2.1 Economic Partnership Agreement (EPA)

In March 2012, Zimbabwe signed an interim EPA (iEPA) with the EU under the umbrella of the Eastand Southern African (ESA) regional grouping. This agreement is a framework towards thecompletion of a comprehensive EPA and already gives Zimbabwe 100% duty and quota free accessinto the EU market with a transition period for rice and sugar.

Zimbabwe at her turn will liberalize 80% of her imports from the EU by 2022 (45% by 2012 with theremaining 35% of imports being liberalized progressively until 2022). Zimbabwe left out 20% ofsensitive products of infant industries as well as products of animal origin, cereals, beverages, paper,plastics and rubber, textiles and clothing, footwear, glass and ceramics, consumer electronics andvehicles.

Overview of Interim Agreements on Trade:

Duty free export of ACP goods to the EU: Since 1st January 2008 all goods originating from an ACP country or region thatnegotiated an interim EPA have duty free access to EU markets, except for rice and sugar where access to EU markets hasbeen/will be duty free from 2010 and 2015 respectively.

Gradual and controlled elimination of ACP duties on EU goods: The opening up of trade in goods by ACP countries reflectsthe shared view that the development objectives can best be achieved if trade opening is gradual, asymmetrical andcontrolled, with enough flexibility to protect sensitive sectors (especially agriculture) and safeguard mechanisms to copewith any unforeseen problems.

ACP tariffs on products considered sensitive to EU imports: These are not being reduced as the ACP were able to makemade extensive use of the scope in WTO rules for excluding such products. Typical exclusions cover agricultural productsconsidered key to food security and the income of rural communities, products from industries considered vulnerable and,in some cases, products where import duties provide essential state revenues. Côte d'Ivoire, Ghana, Comoros, Madagascar,Zambia, Zimbabwe and the East African Community countries (Kenya, Tanzania, Uganda, Rwanda, Burundi) all used thisflexibility to exclude almost 20% of their EU imports from liberalisation.

Tariffs are reduced over long transition periods: The ACP also made use of the flexibility offered to spread liberalisationover periods up to 25 years to allow their economies to build up competitiveness over the medium and long term. Thatsaid, the speed of liberalisation varies.

Rules of Origin: Improvements in Rules of Origin is one of the most important aspects of the EU's EPA market access offer,particularly for LDCs that already have full duty free access under the WTO-compatible Everything But Arms (EBA) scheme.

3.3 CURRENT TRADE TARIFFS

The current structure of applied tariffs is characterized by a three-tier structure with tariffs escalatingaccording to level of processing. Lower tariff rates are applied to raw materials, higher rates for semi-processed products and highest rates for finished industrial products. The actual tariff rate is calledthe applied tariff rate and is much lower than the bound rates.

Table 5: Zimbabwe’s bound and applied tariff schedule on selected agricultural products.

ProductBound rate

(%)Applied rate

(%)

Pepper, crushed or ground 25 15

Vanilla 25 15

Cinnamon and cinnamon tree flower, crushed or ground 25 15

Cloves, crushed or ground 25 15

http://eeas.europa.eu/delegations/zimbabwe/documents/eu_zimbabwe/factsheet_iepas_en.pdf


ProductBound rate

(%)Applied rate

(%)

Nutmeg, crushed or ground 25 15

Rice: semi-milled/wholly milled 25 15

Cocoa butter (fat or oil) 25 15

Cocoa powder, unsweetened 25 15

Essential oils1 25 5

Zimbabwe’s applied tariffs for imports (including agricultural products) from the COMESA region areeither zero-rated or zero. With the implementation of the SADC trade protocol, applied tariffs onimports from the region will also be lower than the applied Most Favoured Nation rates.

3.4 INVESTING IN ZIMBABWE

3.4.1 Investment Modalities

The Principle business entities operating in Zimbabwe fall into the following broad categories:

Sole proprietorships

Partnerships

Co-operatives

Companies (public or private) incorporated under the Companies Act (Chapter 24:03)

Foreign branches/representative offices

Subsidiaries

Trusts.

3.4.2 Company Formation

The most common business type is the private company. The first step in the formation of a companyis to submit a name search for the desired name to be registered. When this is successful this name isgenerally reserved for a limited period. A company is then registered by filing a Memorandum ofAssociation (Articles of Incorporation) and Articles of Association with the Registrar of companies.The former document lists the company’s name, its sphere of business; details of its shares that eachsubscriber undertakes to take up and a statement to the effect that liabilities of shareholders arelimited. The second document regulates the company’s internal operations. Registration takesbetween one and two weeks, if all documentation is in order and the prescribed fees are settled. TheRegistrar may request additional information with respect to entities restricted by other laws orregulations (for example licensing and qualifications may be requested when registering aPharmacy). Although registration is not a lengthy process (in case of extreme urgency) an alternativeis to purchase a previously registered “shelf” company.

No minimum capital requirements are contained in the companies Act. A fee of US$5 in each US$100of authorised capital is payable with a set minimum. Issued share capital cannot exceed theauthorised capital.

1Excluding oils of bergamot, lavender, anise, bitter almond and camphor, caraway, cinnamon, cumin, mustard, nutmeg, rosemary, valerian

and vanilla in immediate packing’s of a content minimum 5 litres/5 kg or other packing’s


3.4.3 Foreign Branches

A company incorporated outside of Zimbabwe and having established a place of business withinZimbabwe may carry out its activities as a branch of a foreign company without having to form aseparate locally registered company. Setting up a branch requires approval from the Ministry ofJustice and registration with the Registrar of Companies.

An investor wishing to use this form of business is required to submit an application to the Ministerof Justice with supporting documents at a fee of US$ 520.

After Minister of Justice’s approval, the Registrar of Companies will be given the authority to issue aBranch Registration Certificate. Proper accounting records of transactions in Zimbabwe for intervalsnot exceeding twelve months must be available within Zimbabwe and annual financial statementsmust be lodged with the Registrar of Companies. If the foreign company is a holding company, groupaccounts prepared in accordance with the requirements of the Companies Act also must besubmitted.

3.4.4 Foreign Investments

New foreign investment into Zimbabwe requires an Investment License issued by the ZimbabweInvestment Authority (ZIA). A completed application form (ZIA 1) acts as the project proposal. A non-refundable processing fee of US$500 is paid on submission of the application and if successfulUS$2,500 is paid when the license is issued.

ZIA licenses new projects housed through companies or joint ventures. It appears that under thepresent legislation going through ZIA is not mandatory but it is highly recommended primarily as theZimbabwe Investment Authority Act offers investors some degree of protection, and this license willenable the ability to remit future profits. It is also anticipated that the regulations may in the futurebe amended to make registration with ZIA mandatory.

According to the Indigenisation and Economic Empowerment Act, investments requiring aninvestment licence cannot be done in certain reserved sectors without approval from the Ministerresponsible for Indigenisation and the Minister responsible for Economic Planning (see also 2.5).Reserved sectors are:

Agriculture: primary production of food and cash crops;

Transportation: passenger busses, taxis and car hire services;

Retail and wholesale trade;

Barber shops, hairdressing and beauty salons;

Employment Agencies

Estate Agencies;

Valet services;

Grain milling;

Bakeries

Tobacco grading, packaging and processing;

Advertising agencies;

Milk processing;

Provision of local arts and craft, marketing and distribution.

3.4.5 Investor Visa

A person who wishes to establish a business in Zimbabwe through investment must hold a Visa andthis can be obtained by:

Submitting fully completed residence application forms in duplicate;

A written application letter by the prospective investor stating the project proposal;


Zimbabwe Investment Authority certificate of approval;

Certificate of incorporation from the Registrar of companies;

Local bank statement for the funds transferred;

Bill of customs clearance papers for the importation of capital equipment.

Investment of over US$1 million in a project approved by ZIA can qualify the investor for permanentresidence on application. Investments of at least US$300 000 in a sole business venture in a projectapproved by ZIA will qualify for a residence permit for 3 years at the end of which permanentresidence may be granted (US$ 100,000 for investors with a valid temporary resident permit).Investments of US$100,000 in a joint venture, approved by ZIA, with a bona fide Zimbabweanpartner will qualify for a 3 year residence permit at the end of which permanent residence may begranted. Any foreigner wishing to take up employment in Zimbabwe must first be in possession of avalid work permit. Immigration regulations permit local companies to employ foreigners undertemporary work permits. Such permits are issued by the Department of Immigration, at theirdiscretion, upon application by the company, which should provide proof that the requisite skillcannot be sourced locally.The Department of Immigration has been known to refuse visa on this basis. The foreigner will onlybe permitted to work within the capacity for which that specific permit was issued. Spouses andminors may reside in Zimbabwe provided that they do not take up employment.

3.4.6 Exchange Control Regulations

Foreign investors and visitors may bring an unlimited amount of foreign currency into the country.Foreign investors may bring equity into the country in the form of cash or machinery and equipmentbut are not permitted to capitalise as part of equity, raw materials, technical and licensing fees andother services. Repatriation of 100% of the original capital investment and up to 100% dividendsfrom net after tax profit may also be remitted.

3.4.7 Taxation

After incorporation, a company must register with the Zimbabwe Revenue Authority (ZIMRA) withinthirty days. Also a tax representative approved by the Commissioner General and answerable for allcompany tax matters has to be nominated and an address within Zimbabwe for delivery of noticesand documents under the Income Tax Act affecting the company has to be provided to ZIMRA.

VAT registration is required for every entity which carries on a taxable activity and whose annualtaxable turnover exceeds or is likely to exceed US$60 000 per annum. Non-resident entities arerequired to appoint a representative registered operator in Zimbabwe and furnish the Commissionerwith the particulars of such representative registered operator.

Zimbabwe has Tax Treaties with Botswana, Bulgaria, Canada, France, Germany, Malaysia, Sweden,United Kingdom, Mauritius, Netherlands, Norway, Poland, Serbia and South Africa.

3.4.8 Finance

Finance is available from commercial banks in Zimbabwe but their interest rates are high (15%-20%)and usually is short term. Collateral security by way of fixed assets is required.

Both foreign and domestic banks operate in Zimbabwe. Major commercial banks in Zimbabwe are:AfrAsia Bank Zimbabwe Ltd, Barclays Bank of Zimbabwe, CABS, CBZ Bank Limited, FBC Bank Limited,Standard Chartered Bank, BancABC Zimbabwe, MBCA Bank Limited, Steward Bank, ZB Bank limited,Stanbic Bank Zimbabwe Ltd, Allied Bank of Zimbabwe, Agricultural Bank of Zimbabwe (Agribank),First Banking Corporation and NMB.

Development aid organisations also provide finance by way of subsidised loan and grants to businessoperating in the agriculture value chains if pre-defined social impact requirements are met.


The Credit for Agricultural Trade and Expansion (CREATE) Fund was established by SNV NetherlandsDevelopment Organisation and HIVOS (also from the Netherlands) to facilitate the raising of capitalfor lending to commercial agriculture value chain actors in Zimbabwe. The CREATE Fund is managedby the Zimbabwe Agricultural Development Trust (ZADT) and is funded by the Danish InternationalDevelopment Agency (DANIDA) and the UK Department for International Development (DFID). Loansrange from US$ 5,000 to US$ 200,000. Tenures for working capital loans range from 3 months to 12months and for capital investments up to 36 months. The facility is implemented by the followingbanks:

NMB Bank Limited;

Steward Bank;

BancABC;

FBC Bank Limited.

Loans are provided on a commercial basis with lower interest rates at about 11%.

3.5 INDIGENISATION AND ECONOMIC EMPOWERMENT

The Indigenisation and Economic Empowerment (IEE) Act became operative on 1 March 2010 andstates that at least 51% of the shares of every public company and any other business shall be ownedby indigenous Zimbabweans with business defined as “any company, association, syndicate orpartnership of persons that has for its object the acquisition of gain by the company, association,syndicate or partnership, or by the individual members thereof, whether the business is registered interms of the Companies Act or otherwise.

The regulations allows for a variance in this regard where it is necessary to achieve other socially oreconomically desirable objectives. What this actually means has not been well specified so far.Anyway, it will require approval by the Minister of Youth, Indigenisation and EconomicEmpowerment.

Indigenous Zimbabweans are defined as “any person who, before the 18th April, 1980, wasdisadvantaged by unfair discrimination on the grounds of his or her race, and any descendant of suchperson, and includes any company, association, syndicate or partnership of which indigenousZimbabweans form the majority of the members or hold the controlling interest”.

An obligation is put on every non-indigenous business to notify the extent of present or futurecompliance. Every non indigenous (i.e. those that are not already 51% owned by indigenousZimbabweans) business in Zimbabwe with a Net Asset Value of or above USD 500,000 is required tosubmit a prescribed form (IDG01) together with a provisional indigenisation implementation plan(IIP) to the Minister within 75 days of commencement of business. These obligations extend also toindigenous companies that later cease to be indigenous. For sector rules and regulation we refer tothe sector descriptions with their thresholds and obligations of ‘Doing Business in Zimbabwe’ byDeloitte.

The laws applicable to Indigenisation now includes the following of which concerned readers shouldbe fully aware of and where necessary seek advice of their legal counsel are as follows:

Indigenisation and Economic Empowerment Act Chapter 14:13- Acts 14/2007, 11/2009.

Indigenisation and Economic Empowerment Act (General) Regulations 2010 – SI 21/2010amended by SI 116/2010 and 34/2011 and 84/2011.


Indigenisation and Economic Empowerment Act (General) Regulations 2011 – General Notice114 of 2011 and General Notice 280 of 2012.

Indigenisation and Economic Empowerment Act Transfer of Investment Trust 2010-Government Notice 6 of 2010.

It is indicated – but not (yet) included in any Act - by Government that implementation ofZimbabwe’s IEE laws and regulations will be undertaken under a sector specific approach that isguided by the following:

Resource Based Investments: In the case of resource based investments, the Zimbabwe contributionis the depleting asset in the form of the in-situ value of the mineral which will be Zimbabwe’scontribution to the 51% of the business. The investor who comes with capital, technology andmanagerial skills to exploit this depleting resource is entitled to 49% of the shareholding.

Other Investments: With respect to the other sectors of the economy, the 51/49% share structurestill applies, yet the 51% contribution by the Zimbabwean party is not brought in in the form ofnatural resources, but by other means of capital.

Where the enterprise does not benefit from a natural resource or raw material derived fromZimbabwe, the business partners in the investment are free to make their own decisions on how andwhen, within the gazetted framework (being the laws mentioned above), the 51% contribution is tobe financed or achieved.

The investor has a privilege of choosing a Zimbabwean partner. Only where this arrangement hasfailed the government is entitled to assist.

The challenge Zimbabwe has faced relates to perceptions, as well as elements related tointerpretations over the application of our Indigenisation policy.

A lot of clarifications are being sought by would be investors on our IEE laws and regulations, thissituation will continue to do so due to that Zimbabwe policy makers have not been speaking withone voice on this issue, a development that has tended to create and add to the confusion.

Confusion on over IEE seems to be emanating from the process rather than the Law. (Ministry of Youth,

Indigenisation and Economic Empowerment 2014)

3.6 ENABLING BUSINESS ENVIRONMENT TO ATTRACT FDI

In April 2014 the Government organised a workshop to re-establishment of Special Economic Zones

[SEZs] in Zimbabwe. These zones, according to the Government, will be designated geographical

regions where enterprises can be established operating under special regulations; the zones are

intended to enhance competitiveness and job creation and promote foreign direct investment in

Zimbabwe.

The stated purpose of the workshop is to bring together Ministers, Parliamentarians, senior civil

servants, parastatals, bankers, industrialists, diplomats, academics, representatives of the private

sector, investors, the media, and international experts on the development of SEZs. According to a

statement posted on the Government website, the Government has decided that SEZs are a way to

encourage exports and foreign exchange earnings while addressing the massive unemployment rate,

broadening the economic base and attracting development and new technologies.


This is not be the first time that the Government has turned to SEZs as a means to attract investment

and accelerate the economy out of stagnation. At first, SEZs were established under the Income Tax

Act; they were then called Export Processing Zones [EPZs]. Exporters who operated within them were

given tax exemptions but otherwise they enjoyed, no special exemptions from the ordinary laws of

Zimbabwe.

Later, in 1995, the Export Processing Zones Act was promulgated which established a parastatal

authority responsible for establishing export processing zones, attracting investment to the zones,

and issuing licences for businesses to operate within them.

In 2007 the Export Processing Zones Act was repealed by the Zimbabwe Investment Authority Act,

though industries that were licensed to operate in the zones continued to enjoy certain tax

advantages.

The Act did encourage economic development. According to a paper quoted on the Government

website, by 2004 projects in export processing zones had created over 32 ,000 jobs and US$172

million worth of investments.

The only feasible way out of Zimbabwe’s dire economic straits, in particular its very high rate of

unemployment, is to encourage economic activity by increasing national production and

productivity, and this in turn requires investment which must come from foreign sources.

Government has recognised this by its renewed interest in SEZs.

For SEZs to be effective, the following conditions should be met:

Excellent infrastructure must be provided within the zones; Involvement of the private sector in developing the zones should be encouraged; The zones must have close links with the rest of the country’s economy; Setting up business in a SEZ should be as simple as possible; They should be seen as pilot projects to try out reforms; The regulatory regime must be clear and secure.

It is open to doubt whether the Government of Zimbabwe will be able to meet all, or indeed any, of

these.

3.7 BUSINESS ENVIRONMENT ASSESSMENT

The World Bank ranks the Zimbabwean business climate 170 out of 189 countries in its Doing

Business 2014 reports (http://www.doingbusiness.org). The regional average for Sub-Saharan Africa

is 142 and in the Southern African, only Angola has a lower score. The table on the next page shows

the ranking of Zimbabwe at 10 business indicators.

Table 6: Rank of Zimbabwe amongst 189 countries at ten business indicators

Indicator Rank

Starting a business 150

Getting electricity 157

Registration of property 93


Dealing with construction permits 170

Resolving insolvency 156

Cross border trading 167

Getting credit 109

Investor protection 128

Paying taxes 142

Enforcing contracts 118

Source: World Bank 2013

Zimbabwe has a poor track record respecting property rights which was demonstrated by the FTLRP

which started in 2000. All commercial agricultural land was nationalised and non-indigenous

Zimbabwean (usually with European descents) where forced to leave their farms, often with

intimidation.

So far government refuses to compensate displaced farmers for the loss of land but has indicated to

be willing to negotiate to compensate for loss of investments in farm improvements. It is unknown

whether of when this will materialize.

A number of the nationalised farms were foreign owned and some were protected by BIPPAs.

However, in order to claim protection from international investment treaties, these farmers had to

appeal to international arbitrary tribunals themselves which is a lengthy and complex process.

Nevertheless different farmers successfully could claim compensation. For example, a group of Dutch

farm owners successfully claimed compensation after turning to the International Centre for

Settlement of Investment Disputes (ICSID). So far the government of Zimbabwe has been reluctant to

fulfil its payment obligations and prefers to have it accumulated with interest penalties.

Foreign investors are advised to submit their investment plans to the ZIA. However in the past it has

been reported that ZIA refused investment plans on their merits but handed over the investment

plans to better connected investors for implementation. It has been verified that this was not the

case under the current ZIA management.

Two companies interviewed exporting horticulture products and flowers reported violent and lasting

attempt to take over their operations by well connected (former) politicians. Both companies

managed to fend these attempts off by way of using their own networks. These incidents have

resulted in significant loss of revenue (up to one year).

Below the results of a SWOT analysis of the Zimbabwean business climate are presented.

Strengths Weaknesses

Agricultural wealth: ideal for producingmaize, tobacco, cotton, and wool;

High literacy rate; Availability of agricultural expertise.

Former commercial farmers operating asconsultants;

Legal system based on Roman-Dutch lawand English law;

Indigenisation act not yet transparent; Uncertainty about future commercial land

rights; Lack and high cost of finance; Poor domestic markets; [Food insecurity owing to] low

productivity, low investment, as well asclimate change induced droughts and


Below the major risks on doing business in Zimbabwe and the corresponding mitigation policies are

presented.

Risks Mitigation policies

Financial sector vulnerabilities

stemming from weak governance, low

interbank market activity, high non-

performing loans (15.9% on average),

low capitalisation and poor asset

quality in several banks;

Reaffirmation of the use of MultipleCurrency System;

Introduction of other foreigncurrencies;

Development Banks inject capital in thecommercial banking system, includingFMO.

DANIDA and DfID inject capital in thecommercial banking system throughthe Create Funds. Banks working withthe Create Fund receive TechnicalAssistance;

Reengagement with AfDB, World Bank and IMF

result in capital injection and capacity building

of Reserve Bank of Zimbabwe and commercial

banks.

Widening current account deficit due to

faster growth of imports than exports.

Tax Incentives to value addition incurrent exports;

Imports management withoutcompromising the objectives of re-tooling and ensuring the availability ofessential imports.

Low yields in both crop production and

animal husbandry

Irrigation development; Timely availability of affordable

financing; Research and extension services; Agricultural training and skills

development; Agricultural mechanisation; Viable and accessible marketing

arrangements.

English speaking; Road infrastructure; Stable monetary and limited currency

fluctuation because of use of US$ andZAR;

Location of key farming areas in relationwith infrastructure.

Commercial farms can be reactivatedwithout too much land clearing required;

Basic irrigation infrastructure still available(land of 40,000 dams);

Low crime rates.

erratic rainfall distribution pattern; Lack of industry competiveness due to

obsolete equipment and outdatedtechnology;

Under-investment in education andinfrastructures, especially energy;

Lack of transparency and accountability inthe exploitation of mineral resources;

Widening current account deficit due tofaster growth of imports than exportsleading to haemorrhaging of the economy.


Risks Mitigation policies

Attempts to take over agricultural land

and production equipment

BIPPA (not always respected) Networking

Political uncertainties Acceptance of the 2013 elections bySADCC, AU, COMESA and UN

EU’s lifting of art.96

3.8 CONCLUSIONS

Zimbabwe is recovering from a serious political and economic crisis which bottomed out in 2008.

With an aging single ruler without a clear path for succession and different factions within the ruling

party positioning for the day after the political situation still is unstable. The business climate

definitely is high risk with limited formal business and investment protection. The judiciary is highly

politically compromised, although one that still makes periodic rulings against the government, often

on technical grounds.

On the other hand Zimbabwe is an US$ based economy reducing exchange rate risks and expatriation

of dividends is fairly easy. The banking system is functional and major international banks are

represented in the country as well as international accountancy firms. Domestic business is not

competitive because of high cost of finance.

The Zimbabwean labour code is unfavourable to employers with aggressive labour unions. It has was

reported that employees with fixed term contracts successfully claimed severance payment after

contract expiration. Companies interviewed indicate that the Zimbabwean hiring and firing practice is

a business risk and prefer to work with contractors instead of employing and limit employment to a

core team.

4 ZIMBABWEAN AGRIBUSINESS SECTOR

4.1 INTRODUCTION

In this chapter the value chains of the agriculture sector in Zimbabwe are explained. Also the most

important and/or business wise promising value chains are presented. In the following chapters,

these value chains are explained in more detail.

A value chain is described as the various stages of a production process. Within the agricultural

sector, these stages include input supply, production, processing and marketing, retailing and

consumption.

Figure 7: value chain model and various levels


Source: ACDI/VOCA

Actors along a value chain often move beyond spot market transactions to establish relations with

each other through contracts, vertical integration, alliances, and other forms of coordination. These

relations can cover a multitude of arrangements for production, processing, and logistics. The

benefits that are usually sought from stronger linkages include improved access to inputs,

technology, information, markets, and capital.

The strength of relations within the value chain is determined by the trade-off between the

economic incentives associated with stronger relationships and the costs of losing.

The value chain approach allows distinctions among various categories of actors in the value chain,

namely:

Chain actors who are directly involved in the transactions;

External actors or networks that provide services, expertise, and exert influence;

Excluded actors, who by force or by choice are no longer active in the chain;

Non-participants, who never participated in the chain due to lack of interest or capacity.

4.2 INPUT SUPPLIERS

4.2.1 Fertilizers and Crop Chemicals

The fertilizer and chemical industry has a strong impact on the manufacturing sector’s performance

and the Zimbabwean economy in general, by virtue of it being one of the key drivers of the

agricultural sector, which in turn is the main source of the country’s industrial sector inputs.

Currently about 32% of fertilizer and chemicals supplies is produced locally, while about 68% are

imports. Zimbabwe has a well-developed fertilizer industry whose ownership structure is cross

linked.

Fertilisers and technical services on crop nutrition are supplied by companies like ZFC, Windmill,

Omni, Proffer, Superfast, Farmers World, Bayer, Green Yard, Agricore, Prime Crop Protection, Prime

Seeds, Avanos Seeds, National Tested Seeds and a host of new, upcoming and smaller players.


Suppliers of agrochemical and technical services on plant protection include: ZFC, Agricura, Windmill,

Pivotal, Curechem, Polachem, Intercrop, Citchem and Technical Services Africa.

Aerial application of crop inputs (fertiliser & chemicals), is provided by AgricAir Pvt Ltd, operating

from Charles Prince Airport. Aerial application was common before the FTLRP. Zimbabwe has 196

airports (CIA World Factbook 2013), most unpaved and many commercial farms also had airstrips. In

its heydays, AgricAir was operating 23 crop planes. The need for aerial application is high and it is

reported that A2 farmers are experimenting with ultra-light planes for input applications which is

against CAAZ (Civil Aviation Authority of Zimbabwe) regulations.

The aerial application has various advantages in comparison with land application and is common at

the well managed large sugar estates in the Southern part of the country. Aerial application has the

following advantages:

On spot timely application possible;

Less soil texture disturbances and compaction;

Savings on land transport and storage costs which are significant taking into considerationthe long distances and poor quality of the (rural) road system;

No need to store inputs close to the fields reducing input diversion and theft.

4.2.2 Irrigation Development

While over 550,000 ha of Zimbabwe’s land is irrigable, only 33.6% or 200,000 ha is under irrigation

development, with a significant number of the irrigation schemes non-functional. This, therefore,

means that the country continues to experience underutilisation of existing water storages.

Accordingly, the 2014 National Budget prioritises rehabilitation and of all those idle irrigation

schemes, while gradually putting on board those identified and planned new schemes in all the

Provinces.

In this regard, the Government has proposed a budget allocation of US$9.4 million to target the

rehabilitation of communal irrigation schemes to ensure that some of these idle investments start to

be utilised. (At the moment of writing this report, it is not clear whether the Government actually

released the budgeted funds for this purpose).

4.2.3 Land Mechanisation

Land mechanisation equipment can be classified into tractor drawn and animal drawn equipment.

Tractor drawn equipment can generally be classified according to its uses on the field as follows:

Uses Type of equipment

1. Land preparation/soil working

equipment

Ploughs, tillers, harrows, ridgers, rippers

2. Planting equipment Seed drills, fertiliser spreader, planters, seeders

3. Equipment for fertilising and pest control Fertiliser spreaders, sprayers (knapsack), cultivators

with top dressing unit

4. Harvesting equipment Combine harvesters, potato diggers, grain

threshers, etc.

5. Transport equipment trailers


Animal drawn equipment is equipment that is drawn using oxen or donkey draught power andincludes ploughs, harrows, cultivators and scotch carts among others. Other products in the sectorinclude irrigation equipment and pipes, hammer mills, hand implements including hoes and sickles.

Main players are William Bain & Co., AgVenture, Hastt Zimbabwe, Zimplow, Sabata Holdings, BrownEngineering, Munted Tractors and Farmec.

Arable areas in Zimbabwe are now predominately cultivated by smallholdings (communal and A1farmers), which vary between 2 to 5 hectares. These are too small for tractor mechanisation otherthan organised groups using land preparation services by large tractors and implements. For thisreason small land preparation mechanise units have been introduced for the individual smallholdergrower, improving land preparation and general cultivation techniques, resulting in timely planting,increased yields and product quality. These mechanisation units are more suitable for Zimbabwe’spresent smallholder farmers, where big tractors and large implement programs have utterly failedand where most farmers still use hand power to cultivate their fields.

4.3 PRODUCERS

The Zimbabwean agricultural system is dual in nature, comprising large-scale commercial farms

which were historically owned by minority white settlers while the black majority occupied the

smallholder farms.

In 1980, over 15 million hectares was devoted to large scale commercial farming comprising around

6,000 farmers, nearly all of them white. This fell to around 12million hectares by 1999 through a land

reform and resettlement programme largely funded by the British Government under the terms of

the Lancaster House Agreement. Meanwhile, smallholders moved from subsistence farming to

commercial producers of a number of key agricultural enterprises through various policy shifts and

agricultural restructuring measures.

4.3.1 A2 and A1 Farmers

In the year 2000, the government embarked on a Fast Track Land Reform Programme (FTLRP)

replacing almost all remaining 4,000 commercial white farmers with A1 farmer schemes focusing on

small holder production (average size: 37ha) and A2 farmer schemes focusing on commercial

production at a larger scale (average 318 ha). The total number of A1 farmers currently is just over

145,000 farmers while there are about 16,000 A2 farmers. The FTLRP was implemented chaotically

and replaced commercial white farmers were not compensated. Currently A2 Farmers control 10%

and A1 farmers 19% of the agricultural land of Zimbabwe (Ruzivo Trust Factsheet, 2013).

4.3.2 Old Resettlement Farmers

Currently 12% of Zimbabwe farmland is controlled by Old Resettlement farmers, these usually are

indigenous farmers who bought out white commercial farmers (often funded from the Lancaster

House Agreement) or who purchased land before independence. Currently 12% of Zimbabwean

farmland is controlled by old resettlement farmers (Ruzivo Trust Factsheet, 2013).

4.3.3 Smallholder Farmers

Zimbabwe smallholder agriculture was based on a wide range of food crops for balanced nutrition

and risk aversion. Usually the crops consisted of sorghum, maize, groundnuts, sweet potatoes,

cowpeas, pumpkins, melons, finger millet, and rice. After the FTRLP, most small holder farmers

shifted from producing traditional crops such as maize and wheat to more drought resistant crops

and cash crops.


The main influence in this has been the result of advocacy efforts by donor agencies encouraging the

production of small grain crops such as millet and sorghum. Furthermore, government’s marketing

and pricing policies encouraged the commercialisation of smallholder production and also developing

aid organisation shifted towards the promotion of market based development solutions. For

example, companies are provided with subsidised loans and grants when contracting smallholder

farmers. Also smallholder farmers were trained engaging contract farming schemes. The collapse of

the commercial farming sector also contributed to increasing demand for smallholder producing.

Consequently there has been a dramatic increase in the output of cotton, burley tobacco and

groundnuts among smallholder producers after the introduction of the multicurrency system.

Traditionally cotton has been a small-holder crop. On the other hand, smallholder farmers started

producing tobacco large scale only recently. By now tobacco is by far the most important crop

produced by smallholder farmers.

It is estimated that currently 92 per cent of the 5.3 million cattle in the country are owned by

smallholder farmers, mainly in the dry areas of the country. Smallholder farmer control 55% of

usually more marginal farmland (Ruzivo Trust Factsheet, 2013).

4.3.4 Large Scale Farms

Finally, 10% of Zimbabwean farmland is controlled by large scale producers (Source: Ruzivo Trust

Factsheet, 2013), often (partly) foreign owned and protected by investor protection treaties. Examples

are Triangle Estate (sugar cane), Forester Estates (tobacco), Mazowe Estates (citrus), and Ariston

(tea).

4.4 PROCESSORS

The food, beverages and tobacco processing sector was well established and highly diverse in

Zimbabwe with the domestic agricultural sector providing 60% of its raw material requirements. The

food sub sector is very broad consisting of cane, oil seeds, grains, vegetables, meat production and

processing. This sector has operations which run from small, medium to large scale.

Major milling companies include: Blue Ribbon, National Foods, Victoria Foods, Grain Marketing Board

and Premier Milling. Main products are; wheat flour biscuits, maize-meal, salt, sugar beans, rice and

vegetable oils.

After the decline in agricultural output because of the FTLRP the sector has been in arrears.

Exemptions are Delta Beverages (subsidiary of SAB Miller and ZSE listed) and virtually controlling the

beers and beverage markets, National Foods (ZSE listed and part of Innscor, also ZSE listed) and the

tobacco processing companies.

Most of the beef produced in the country is marketed with minimal processing and value addition.

All canned beef available on the market is imported.

It is the Government’s intention to put in place tariff structures that promote the recovery of the

local food processing industry through levying customs duties on all imported non basic food stuffs

and exempt local food manufacturers from paying duties for raw materials and packaging

irrespective of the country of origin. This should have the consequences that the pricing mechanisms

will favourable for the local manufacturers but for products not being manufactured in Zimbabwe

will result in that the consumer has to pay the price for these higher taxed imports and their

availability on the shelves.


4.5 MARKETS

4.5.1 National Retailers and Wholesalers

Three supermarket chains dominate the retail sector in Zimbabwe: TM (owned by Meikles Africa

Group and Pick n’ Pay South Africa), Spar (operated by Innscor Africa and Spar South Africa, and the

OK Group (OK, Bon Marche, OK Express and Pax Cash and Carry), operated by Delta Corporation.

Given the transformation brought by the land reform programme in Zimbabwe, the existence of

numerous small to medium scale farmers entail fundamental changes in the relationship between

farmers and retailers. In fact, the rapid changes in many rural supply chains mean that these growers

need to change how they do business. For the retailers, it means switching marketing channels,

through going to the growers or growers groups. For the farmers, it means investing in organizational

arrangements that enable them to have access to growing market niches.

4.5.2 Informal Markets

Smallholder farmers have the option of selling their produce either through the corporate or

informal market systems. However, it generally shows that the conditions for marketing set within

each system heavily influence the ultimate marketing decision made by the producers.

The corporate retail markets emphasis on quality and consistency in meeting demand usually leaves

the farmers with limited chances of pushing their fresh produce through to them. Consequently, they

turn to the informal markets which are supply driven with minimal emphasis on quality.

Small-scale growers usually sell their produce at farm-gate level, where middlemen andretailers come with their own transport to buy produce on demand;

A small number of smallholder growers sell by the roadside. This is attributed to the longdistances to the main roads, which would serve as potential profitable sites for the farmer’sproduce as well as that they do not have adequate transportation for their produce to sell bytheir roadside so they prefer selling at the farm-gate to hawkers who then sell at such points.For those that sell by the roadside, it is because their plots are located relatively close to oralong the road thereby necessitating roadside marketing;

At open air markets, each producer bears sole responsibility for transporting produce,advertising it and finding customers, and seeking market information for the day to guide inbargaining for a fair price. The Mbare Musika is the largest fresh fruit & vegetable market inZimbabwe and tends to be a price determinant for other distant markets. Mbare Musika isthe first port of call for many producers and middlepersons who bring their produce toHarare. In terms of operation, the market is controlled by many players, with the City ofHarare providing space and infrastructure for the selling of the vegetables.

4.5.3 Exporters and Global Traders

Zimbabwe has a state of the art 4,500m2 Freight and Handling facility at Harare International Airport

which is equipped with blast freezers, vacuum coolers and scissor lifts. This facility was built in the

late 90s to cater for the huge volumes (600 - 650 tonnes per week) of outgoing flowers, vegetables

and fruits at that time. Currently this facility is underutilised as the exports have fallen to around 150

– 170 tonnes per week. Most of fresh cut flowers and fresh produce from Zimbabwe are still going to

Europe via KLM freighters and Emirates which is managed by the local KLM Agent in Harare. KLM

Freighters are coming in three times per week a (Monday, Wednesday and Friday) and Emirates

twice (Friday and Saturday). All uplift from Harare International Airport by KLM is co-loaded with

freight from Nairobi. Air cargo handler is Harare International ground Handling Service (AGS).


All handling of export flowers vegetables, other produce and hides is being done by the following

Agents: FX Logistics, Jacana, Barefoot and Rollex.

4.6 NATIONAL ENABLING ENVIRONMENT

Agriculture today is becoming a key, world-wide, security issue, which means it requires an

understanding of current realities and future trends in the structure and magnitude of effective

supply and demand for agricultural products. In this regard, government has a role to play, and

clearly is central to agricultural policy reforms and market restructuring processes. Therefore putting

in place institutional, legal and financial frameworks that deal with private investment in agribusiness

and agro-industrial enterprises especially is critical.

Zimbabwe has a long history of strong governmental interference with agriculture which contributed

to a flourishing agricultural sector - commercial and smallholder. Agriculture also has been politicised

cumulating in the FTLRP in 2000. The resulting land ownership insecurity stopped financial investors

from investing in the agriculture sector.

Currently the government is in the process defining an improved regulatory framework defining

agricultural land use conditions but this also causes unrest within the new resettled A1 and A2

farmers fearing losing their newly acquired farms and subsequently stopping them from developing

these farms.

The political and economic crisis had a negative effect on the capacity of the government to develop

and implement appropriate agricultural policies. For example, the lack of effective enforcement of

SPS (Sanitary and Phytosanitary Standards) standards resulted in poor quality grain commodities,

emanating from the prevalence of substandard commodities on the grain markets, which at times

makes the domestic supply base less competitive than higher quality grain imports. Sanitary and

Phytosanitary protocols are more pronounced within the horticultural value chain because as

unprocessed food, fresh fruit and vegetables can pose risk to human health. Furthermore, the trade

of fresh produce can potentially spread plant diseases that can cause major economic damage.

In general there are inadequate legal instruments to protect the contracting parties related to their

contract farming agreements. Given that a lot of the farming in Zimbabwe occurs under contract, the

regulatory and legal framework governing those entering into contractual farming has been very

weak, which has always resulted in unfair business practices under the contracts but also breach of

contract by growers through side-marketing. There is need to put in place a strong legal framework

to monitor contractual activities and obligations to protect both contractor and grower. The setting

up (2011) of the Agricultural Marketing Authority (AMA) is the first step in the right direction with its

broad mandate to regulate the participation in production, buying and processing of agricultural

products.

4.7 SUPPORTING MARKETS

Supporting markets for the agriculture sector were impacted by the reform of the sector. Basic

business services still are operational but the domestic banking sector virtually stopped activities in

agriculture. Donor supported activities replaced some supporting market functions and primarily are

targeting smallholder development, market linkage development and only operate on a limited basis

in the sector.


4.7.1 Knowledge Institutions

The current wave of globalisation has contributed significantly to the economic growth, but this

growth is not proportionally distributed throughout the nations. A lot of people still cannot afford

the mere basics for sustenance. Poverty is reflected in various ways ranging from lack of purchasing

power, ill health, political influence, economic dislocation and resort to violence.

The quest for better resource benefit has, in some instances, caused traditional human societies to

break-up. Numerous customs expressions and languages are vanishing. Global awareness of these

problems and their recognition by government is increasing. This has resulted in a number of

initiatives by the various knowledge institutions in Zimbabwe (see overview in Annex 1) on

biodiversity, desertification, water and climate changes. Knowledge institutions and universities are

appropriately placed to bring about awareness on the value of the earth‘s ecosystem and the

recognition that knowledge and traditional cultures may contain key characteristics to meet the local

and global challenge of bio-cultural sustainability.

4.7.2 Business and Financial Support

Business support is provided through a basic support network. A number of replaced experienced

commercial farmers now utilize their expertise as agricultural management consultants.

Various donor supported initiatives also provide business and financial support to agri-business after

meeting pro-poor criteria:

The Zimbabwe Agricultural Development Trust (ZADT) was created on the 5th of October 2010 by

SNV Netherlands Development Organisation and Humanistic Institute for Development Cooperation

(HIVOS) for the primary purpose of contributing to the recovery and improvement of the smallholder

farming sector and improve the food security and incomes of rural households in Zimbabwe. ZADT is

a non-profit oriented organisation.

Also in 2010, ZADT launched the Credit for Agricultural Trade and Expansion (CREATE) fund with

funding from DANIDA and DfID and has been providing loan capital to banks that on-lend to value

chain actors who have direct linkages with smallholder farmers. The fund is for value chain actors

operating under input, output and processing windows in the agricultural sectors.

TechnoServe is running Agro Initiative Zimbabwe, a national business plan competition. The

program supports promising ideas in agriculture by awarding capital prizes and technical assistance

to small- and medium-sized businesses that include smallholder farmers in their supply chains and

can serve as models for the broader industry.

4.8 MAIN AGRICULTURAL SECTORS AND SUB-SECTORS

The following agricultural sectors and sub-sectors are described in more detail through the value

chains approach:

Grain crops: Maize and Wheat;

Tuber crops: Potatoes and Cassava;

Oil seeds: Soya bean and Cotton

Horticulture


Livestock: Cattle and Dairy, Poultry and Eggs, Aquaculture.

5 GRAIN CROPS

5.1 INTRODUCTION

Until 2009, the Government controlled all agricultural food commodities. With the freeing up of the

Sector it allowed a massive increase in the number of millers and traders. In the table below the

national production figures for all agricultural commodities from 2004/05 season to date are

presented.

Table 6: National Production figures for the grain and cereal commodities 2004/05 season to date(2013/14 projected)

Grains

and

Cereals

2004/

2005

2005/

2006

2006/

2007

2007/

2008

2008/

2009

2009/

2010

2010/

2011

201/

2012

2012/

2013

2013/

2014

Maize 75,000 94,500 69,700 41,010 78,125 81,925 89,500 83,300 79,800 105,000

Wheat 13,400 17,020 6,455 2,455 1,805 1,130 2,600 2,200 2,000 1,400

Sorghum 1’100 10,840 8,150 11,300 11,350 7,360 5,054 6,470 7,600 10,500

Barley 4,300 5,350 3,200 2,450 3,315 4,050 3,000 3,500 4,400 4,400

Millets 3060 7230 4990 5500 4332 5090 3610 4370 4300 4500

Source: CFU 2014

5.2 MAIZE

Maize is the staple food of Zimbabwe. From 2009 until 2014, government liberalized the market and

the Grain Marketing Board (GMB) became the buyer of last resort. In May this year, Government has

stopped this and so far all maize has to be delivered and paid for by the GMB. Farmer income

protection is being the main issue here but it will have a knock on effect on increasing the price of

maize meal, Zimbabwe’s main staple food, by a considerable margin to an already financial struggling

consumer’s populace.

World prices are as low as US$145 (Chicago Board of Trade) at the moment and the South African

maize price is close to this and is currently sitting at US$ 180/ton (set by market pricing dynamics in

SA), a far cry from the Zimbabwean maize price set by Government of US$390/ton for the 2014

season.

The diagram below follows through the entire value chain for maize, with the enablers of research,

technology, processing, equipment, funding and consumers.


5.2.1 Markets

The deregulation of grain trade in 2009 led to the emergence of key private players in the storage

and trade sectors. Since the formal private grain storage and trade sector seems not yet fully

developed, there are however some key players that have been moving, storing and trading large

volumes of grain over the past few years. The following table is a more recent estimate of the

medium to large millers in operation and also the livestock off-takers.

Table 7: Approximate tonnages of maize used by the larger milling Companies (May 2014)

Competitors

Tonnages

Maize Supply

Annual Maize

Off take

Annual

Milling

Capacity

Toll Milling

National Foods

Limited375,000 275,000


Competitors

Tonnages

Maize Supply

Annual Maize

Off take

Annual

Milling

Capacity

Toll Milling

ProFeeds 90,000 24,000

Central Milling 24,000

Blue Ribbon 24,000

Metro Peach 12,000

Shumba Milling 100,000 36,000 12,000

Mhuga Foods 20,000

Grain Marketing

Board70,000

Gutsa Milling 12,000

Maize Off takers:

Delta Holdings 100,000

CCC Pigs 12,500

Irvines Chickens 60,000

Novatek 9,000

Bhadellas (estimate) 12,000

Northern Farming (estimate) 21,000

Premier milling 9,000

Various 100,000

Total 855,500 497,000 45,000Source: Kennaird 2014

5.2.2 Processors and Traders

Zimbabwe’s grain storage industry has been dominated by a pervasive GMB monopoly that

emanated from the controlled marketing of maize and other grain commodities. In the 1980’s, a

country-wide network of silos was established as part of an expansion drive that was meant to

absorb the previously marginalized communal farmers into mainstream grain markets. This

established infrastructure has ensured the dominance of the GMB in grain storage. Currently, the

nation’s total storage capacity is estimated at 5 million ton, much of which is not being used. The silo

grain storage consists of 10 main depots, with bulk grain being stored in grain complexes with a total

storing capacity of 733,500 ton; while bagged grain can be stored at all depots on hard stands and in

sheds with a capacity of up to 4,266,500 ton.

5.2.3 Producers

Productivity in the maize sector has been poor and uncompetitive and over the past five yearsthe national average yield has been below half a ton per hectare. These have been attributed toseveral factors which include:

Government policies. For example the lack of effective enforcement of SPS standards.The farming sector has therefore been characterized by poor quality grain production,emanating from the prevalence of substandard grain commodities on the markets, which attimes makes the domestic supply base to be less competitive than higher quality grainimports;


A threat to national production has been cheaper maize imports. Landed price of maizefrom Randfontein South Africa is US$220/ton, which is unsustainable for local farmers asthey face increased production input costs;

High cost of transport;

Low producer prices of grain commodities;

Limited access to market information from extension service;

Unreliable supply of low-cost inputs (e.g. seed, fertilizer and electricity), these haveresulted in a drastic increase of production costs relative to imports;

Limited access to appropriate packaging material for processed products, lack of marketingskills;

Inadequate support services from training institutions, private sector consultants, smallenterprise advisors and research institutions;

Limited capacity to mobilize capital for equipment purchase and working capital.

Both Innscor and Origin are producing maize through contract farming schemes. Typical size of farms

contracted is about 300 ha. Innscor indicates that only old resettlement farmers are contracted and

stays at bay from A2 farmers. Origin contracts both old resettlement and A2 farmers. Both

companies have to invest extensively in capacitating contracted farmers by way of providing

technical assistance, inputs, irrigation equipment and mechanization services resulting in low

margins.

5.3 WHEAT

Wheat is the second most important grain crop after maize, with the combined contribution to daily

caloric intake in excess of 50%. The deregulation of the entire agricultural industry in 2009

represented a shift away from a decade long controlled marketing system to more sustainable free

market reforms. The transition of the wheat sector to a free market environment has however

necessitated vast adjustments. The situation on the ground suggests that market actors all look to

the prices generated through the ‘bids’ and ‘offers’ on the open market.


5.3.1 Markets

The main wheat products include flour, semolina, and break wheat, with most Zimbabweans mainly

using bread and flour products for everyday consumption. However, Zimbabwe is a net importer of

wheat. Domestic production managed to achieve 62% of wheat requirements from locally grown

wheat (MoAMID, 2007).

It should be noted however, that the local wheat quality is not suitable for bread flour therefore

adequate and suitable qualities of flour can only be achieved after a certain proportion of hard wheat

is imported to improve the grist qualities of the local wheat product.


The position of Zimbabwe as a net importer of wheat means that trade policies (particularly duty and

tariff regimes) have a key influence in the determination of domestic prices. ZIMRA (2009) tariff rates

reveal that basic unprocessed wheat is operating at zero tariff rates which will act as an essential

instrument in augmenting wheat supplies in future.


The implication of zero tariffs means that the behavior of market participants is largely guided by

world prices, or more specifically, SAFEX market prices, which seem to be playing an important role

rather than signals coming from the GMB announced prices. This current season, the GMB has

announced a wheat producer price of US$400/ton. However, private market prices are at the import

parity price of US$377/ton.

Despite the GMB offering an attractive price, farmers will prefer trading with private traders because

the GMB has in the past been unable to pay farmers in time owing to the poor financing of the

Board. In private trading arrangements, the prices for future contracts and options are being

generated through ‘bids’ and ‘offers’ which are fundamentally reflecting the expectations of market

participants on the prices of the specific wheat and wheat products at different dates in the future.

Innscor has expanded its bread division in 2013 (Innscor Bread). Current production capacity is

450,000 loaves per day.

5.3.3 Producers

Wheat is grown as a winter crop in Zimbabwe and production has been ever decreasing since the

FTLRP in 2000, when annual production was on 25,000 Mt to a merely 1,400 Mt for 2014, figure 8

below. The lack of adequate power supply, inputs, expertise and transport systems have all

contributed to the decrease in this crop.

The prevailing situation of inadequate electricity supply to irrigate this winter crop (dry-season)

makes the economics of growing wheat no longer viable, as yields have significantly dropped from

the commercial 6 – 8 ton/ha down to approximately 3 ton/ha.

Main wheat producers are Innscor and Origin. In 2014, origin contracted 1,000 ha. Also Innscor is

expanding its local wheat producer base although the company imports most of its wheat

requirements.

Origin Group

Origin is a UK company which started as a grain brokerage business in 1993 and since then has

developed into a group of companies specialised in grain and soya bean production and

distribution as well as blending fertilizer into final products. Contracted farmers totally produce

6,000 ha maize and soya bean as well as 1,000 ha wheat as a rotating crop during the winter.

The company is contracting both old resettlement and A2 farmers with title deed holder approval.

Contracted farmers are inexperienced and consequently Origin has to put significant efforts to

capacitate these farmers in order to realise acceptable yields. In addition to input finance, Origin

provides technical assistance, irrigation equipment and farm mechanisation services. The company

wants to invest in harvesting equipment like combines as it is an effective way to reduce side

marketing.

Main clients are Innscor and Olivine.

Margins still are low due to low farmer productivity but the company indicates that demand for

soya beans and wheat is strong (only 33 percent of domestic demand for wheat is grown

domestically). The company indicates that operations are financed through international banks

operating in Zimbabwe.


Figure 8: Grain & Cereals


6 TUBER CROPS INTRODUCTION

Zimbabwean grain farmers are facing significant yield fluctuations from year to year making grain

supply and sustainable earnings unpredictable. In order to cover the countries consumption, grain

has to be imported. The need to shift away from chance and nature based agricultural systems to

climate smart agricultural systems and crops that can naturally stand the storm is heavily felt. Crops

with tolerance to drought or resistance to less rain such as root and tuber crops increasingly are

considered as appropriate alternatives to the grain crops.

Below, attention is paid to the two leading tuber crops in Zimbabwe: potato and cassava.

6.1 POTATOES

The potato crop continues to gain prominence as a possible alternative crop to meet the dietary

needs of an increasing global population. Production volumes of Zimbabwe’s potatoes are slowly

increasing although overall contribution to the global output is still insignificant. An estimated 900 to

1,000 hectares are under potato production every year.

Progress has been made in breeding and multiplying high-yielding Irish potato varieties by the

Ministry of Agriculture, Irrigation and Mechanisation in Zimbabwe’s Horticultural Research Council

(HRC), through on-farm and off-farm research co-ordinated from the Nyanga Experimental Station.

Despite the efforts directed at improving potato production over the past four decades through

government initiated research and development into high-yielding varieties, low resource

productivity and inefficiency still remains a major challenge in the sub-sector.

The table below show Zimbabwe’s contribution to global potato production in Mt.

Grain & Cereals

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

20002001

20022003

20042005

20062007

20082009

20102011

20122013

2014

Years

Pro

duct

ion

inM

t

Maize ('10) Whea t Sorghum Barley Smal l Gra ins (Mil lets )


Table 8: Zimbabwe potato production in global perspective

1980 1990 2000 2010

World total 240,464 520 266,624,520 327,349,600 324,181,889

Zimbabwe 20,441 31,000 32, 000 58,000

Contribution 0.0085% 0.012% 0.0098% 0.018%

Source: FAOSTAT 2012

6.1.1 Markets

Potato has the potential to play a complementary role to cereals in boosting household food security

and is a widely accepted food crop. Currently the country is importing potatoes in order to meet local

demand.

Mbare Musika is Harare’s largest market for potatoes, accounting for 33 percent of the 350-400

tonnes traded per week. The Mbare market pays cash on delivery, while the formal market may take

up to a month to pay farmers who are reluctant to participate in these formal channels even when

the offering price is 20 percent higher.

The bulk of potatoes are sold unwashed in 15 kg pockets, but a market has emerged for washed

potatoes since the dollarization of economy. Eighty percent of all unwashed potatoes are bought by

hotels, restaurants, and processors. Washed potatoes are only available in supermarkets in smaller

pack sizes, catering to higher income customers who pay a 15 percent premium.


Most smallholder potato producers sell the bulk of their produce to small commodity brokers who on

their turn sell to processors, supermarkets and larger wholesalers. However processors,

supermarkets and larger wholesalers often interact directly with smallholder, A1 and A2 potato

producers on their own. Potato processing is in its infancy. Only two companies, Selby and Interfresh,

have invested in potato washing machines.

6.1.3 Producers

Potatoes are produced by smallholder farmers in Mashonaland East and Manicaland Provinces in

Eastern Zimbabwe. It costs between US$4,500 and US$6,500 per hectare of potatoes produced

which currently is an important barrier to go into potato production. The average smallholder

production level is at 7mt/ha compared to a potential farm yield level of 14mt/ha and those from

research stations of 25 to 35 metric tonnes per hectare (Horticultural Research Institute, Nyanga

Experimental Station, 2005). The high returns and short production period facilitate a rapid

establishment of potato production.

Smallholder potato growers usually source their fertiliser requirements from middlemen who partner

with local agro-dealers while the rest sourcing their requirements from external agro-dealers and

individual traders. About 40% of the small-scale potato growers use certified seed procured from

registered seed producers. The remainder do not use certified seed for planting purposes but

instead, much of the seed they used is retained seeds from harvest.


6.2 CASSAVA

Zimbabwean Farmers – commercial, smallholders, A1 and A2 alike – are failing to access inputs for

the production of cereal crops, potatoes and horticulture crops, especially seed and fertilizers. The

costs of seeds, chemicals and fertilizers are beyond the reach of most farmers because of non-

existence of suitable financing mechanisms through most formal financial institutions. This has also

caused the production of the staple crop maize to decline and limited the expansion of potato.

Cassava is well known to have robust characteristics of giving minimum even in conditions where

other crops have failed completely.

6.2.1 Markets

Traditionally cassava has been regarded as a subsistence crop for low-income families in Zimbabwe

providing high levels of carbohydrates during shortages of maize because of its tolerance to drought

and ability to grow in poor soils. Recently the view of cassava as simply a subsistence crop has begun

to change and there is growing interest in developing its commercial potential through improved

varieties, increased productivity, harvesting and processing technologies. The national, regional and

international market for industrially processed cassava is showing its interest.

Estimates as per table below, indicate the present potential domestic demand for industrial cassava

at about 288,000 MT of fresh cassava roots annually.

Table 9: Estimated domestic demand for industrial cassava

Sector

Current

Domestic

Demand

SubstitutionPotentials

(Mt/product)Fresh Roots

Starch 7,000 Mt 50% 3,500 Mt 16,000 Mt

Flour 250,000 Mt 5% 12,500 Mt 44,000 Mt

Ethanol (E10 fuels) 1,600,000 Ltr. 50% 800,000 Ltr. 10,000 Mt

Ethanol (Neutral

Spirit)2,400,000 Ltr. 50% 1,200,000 Ltr. 15,000 Mt

Animal Feed 250,000 Mt 20% 50,000 Mt 175,000 Mt

Glucose 8,500 Mt 50% 4,250 Mt 28,000 Mt

Total Required 288,000 Mt

Source: Brightface 2014


The cassava value chain is in a development stage with a key role for developing organisations

coordinating market linkages between producers and processors.

Food processing: Cassava based starch is used to produce bakery and pastry products, noodles,

soups, sauces, ice creams, yoghurts, lactic drinks, puddings, processed meats. Companies which have

expressed interest in cassava based starch are Nestle, Colcom and Unilever. Nestle produces milk

powder, cereals, baby food, confectionery and breakfast cereals.


Unilever produces affordable soaps, luxury shampoos, and household care products such as

Lifebuoy, Omo, Geisha and stock margarine. Colcom food products include a comprehensive range of

fresh pork, hams, bacons, fresh and cooked sausages, fresh pies, cooked cold & processed meats,

and canned meats.

Paper: Cassava based starch is used to manufacture cartons, high quality papers, different plywood’s,

fillers, stiffeners and leather goods. Hunyani Pulp and Paper industry and Hunyani corrugated have

expressed profound interest.

Flour: Increasing urbanisation has led to rapid increase in the market for convenience foods such as

bread, biscuits, pies and cakes in Zimbabwe. All of these products contain a significant amount of

imported wheat in the form of flour. Milling companies have expressed an interest to partially

substitute wheat flour with cassava flour.

6.2.3 Producers

Cassava primarily is produced in Manicaland and Masvingo provinces by smallholder farmers and

production is considered a secure substitute for grains. Smallholder cassava production is supported

by various developing initiatives, including:

Bio Innovations Zimbabwe – Several Smallholder Cassava fields in the Chipinge area;

Sustainable Agricultural Trust – Several Cassava Demonstration plots in Chivi, Gutu andMasvingo;

Oxfam-Novib – Looking into the possibility of organically grown and processed cassava;

University of Zimbabwe – Cassava projects in the Mutasa district of Zimbabwe.

6.3 CONCLUSIONS

Tuber crop are a promising alternative for grain crops in Zimbabwe. Maize is the staple food of

Zimbabwe but also is both political and socially a sensitive issue. Again, like in much of the

agricultural sector there have been many Government interventions which have curtailed both

Private Sector participation as well as market forces to define prices. In May 2014 was announced

that only the GMB is allowed to buy maize at a fixed price. However the GMB has a track record of

late payments making maize production for the following season more risky. Grain yields also

fluctuate from year to year because of dry spells. A considerable part of the grain production areas

are not suitable for that purpose at all.

Wheat is grown during the dry winter and has to be irrigated. The lack of adequate power supply,

inputs and transport systems have all contributed to the decrease in this crop over the past 14 years.

Innscor and Origin are the major wheat producers contracting large scale farmers and supplying

them with irrigation equipment.

Tuber crops (in particular) are more drought tolerating. Cassava can be well grown on soils with low

nutrient capacity but respond well to irrigation or higher rainfall conditions and the use of fertilizers.

Potato on the other hand requires the application of significant inputs making it a more costly crop to

grow.

Cassava and potato also are liberalized crops, free floating with not much government intervention.

This may change when production of both crops increases and starting to play a significant role in the

agricultural production arena of Zimbabwe.


Cassava has flexible planting dates depending on ecology. Furthermore cassava does not have a

definite maturation point, harvest may be delayed until markets, processing or other conditions are

more favourable. In general it has an ability to enter diverse markets. It offers great opportunities

for industrial exploitation for food purposes e.g. flour, starch, animal feed, paper, glue, textile,

alcohol.

7 OILSEED CROPS

7.1 INTRODUCTION

Zimbabwe’s oilseeds subsector can be divided into edible oils and industrial oilseeds. Falling in thecategory of edible oils are soya beans, groundnuts, cottonseed and sunflowers. The crops selectedfor the market survey are cotton and soya beans. Given that each of the crops selected has its ownsupply chain, the value chain analysis is done on a crop by crop basis. It needs to be emphasized fromthe beginning that cotton and soya beans have more commercial value and are of strategicimportance to the Zimbabwean economy than groundnuts and sunflowers.

Table 10: Cotton and soya beans production 2013/14

CROP 2014/13 (Mt) 2012/13 (Mt) %

Cotton 133,017 144,724 -14

Soya Beans 76,933 84,661 10Source: Ministry of Agriculture

7.2 SOYA BEANS

Soya bean is an important source of protein for both livestock and human populations. The crop’snitrogen fixing abilities make it a perfect rotation option with crops such as maize and wheat as itreduces input costs and therefore capital requirements for resource constrained farmers.

Zimbabwe’s oilseeds industry like many others has seen a decline over the years. The shortage of rawmaterials for crushing due to smaller plantings, cheap imports of cooking oil and outdated machineryhas all led to its slow demise.

Aside from the seed itself, soya bean is used to produce a variety of high-value marketable productswhich include, soya bean cake (stock feed), soya milk, soya yoghurts, soy flour and soya bean oil.Most of the soya bean produced in Zimbabwe is however, primarily used in oil expression. The beancontributes 30% of all the cooking oil production while cottonseed contributes 50% (GoZ, 2008).

7.2.1 Markets

Approximately 95% of all soya bean seed produced in Zimbabwe is destined for the processingindustry for the production of soya bean oil. Soya bean oilcake (also referred to as meal), a by-product of the oil extraction process, is sold to animal feed manufacturers domestically and in theregion (particularly South Africa).

Soya bean cake is an important protein source for livestock, particularly in the poultry and piggerysub-sectors. Soya bean cake extracts can also be used in the manufacture of consumables such assoya-chunks. Another important by-product of the soya bean extraction process is lecithin which isused in the manufacture of bread.



Zimbabwe’s oilseeds industry like many others has seen a decline over the years. The shortage of rawmaterials for crushing due to smaller plantings, cheap imports of cooking oil and outdated machineryhas all led to its slow demise.

In the soya bean oil processing sector, there are five major players. They have had to embark on amassive retrenchment exercise owing to the lack of raw materials and cheap imports from SouthAfrica.

Table 11: Market share of the operational Companies

Company Name Market Share (%)

Surface Investments Private Limited 42

Olivine Industries Private Limited 15

National Foods Limited 24

Blue Ribbon Foods Limited 9

United Refineries Limited 3

Other small processors 7Source; Kennaird 2014

Overall, Zimbabwe has an installed capacity of processing 530,000 tons of oilseeds. However, only63% of this capacity is utilized due to raw material supply constraints and obsolete technology. Thetable in Annex 1 displays the estimates of the installed and usable capacity in the processing sector.

Oilseed processing is capital-intensive, requiring specialised knowledge and technology. There are 3main methods for extracting oil from soya beans. These include:

Solvent extraction;

Mechanical Expeller – Continuous pressing or screw pressing;

Hydraulic pressing – Not common in soya bean and replaced by expeller pressing.

Solvent extraction is mainly used by the large scale operations which process at least 100 tonnes perday. The estimated plant costs are in the region of US$ 20 Million, plus additional costs for chemicalsthat are utilised in the extraction and separation of oil from the soya bean material. MechanicalExpellers (continuous pressing or screw pressing) is a widely applied method of mechanical oilextraction popular among medium to small scale processors who process at least 15 tonnes per day.The plant costs can fall between US$ 5,000 to US$ 50,000.

7.2.3 Producers

Soya bean typically is used as a rotation with maize. Productivity in the soya bean sector has been

poor and uncompetitive because since the FTLRP. Production currently is dominated by a small

number of large A2 producers. Smallholder soya bean production has declined because of lack of

finance and access to inputs. Soya bean producers suggest several factors that could improve the

situation not only soya bean specific but including:

The establishment of a Futures Exchange that will provide farmers with a ready market fortheir soya bean seed;

Land tenure security in order to take away the uncertainties in whether to produce or not;

Increase Irrigation capacity and refurbish non-functional irrigation facilities;

Improve farm level financing or excess to cheaper credit;

Reliable availability and supply of crop inputs (e.g. seed, fertiliser and electricity).


7.3 COTTON

Cotton was introduced in the early 1920s and an elaborate institutional and policy framework has

evolved over the years to support production. The cotton success story was aided by the

advancement in cotton production technologies and the crop research programme. The provision of

effective extension, marketing and economic policies has boosted production. Unlike the experience

of other sectors, cotton production was boosted under Fast Track Land Reform Program as a result of

opening up of new cotton producing areas by farmers settled under both A1 and A2 resettlement

models.

Given the right inputs and summer supplementary irrigation, yields of between 3,000 and 4,000

Kg/hectare can be achieved with the relevant management levels. Current National yields are

between 400 and 600 Kg/hectare.

The current seed cotton crop is in the region of 114,000 ton, 14% lower than the previous season. At

peak the national crop has been up to 360,000 Mt.

Figure 9: Cotton production 2000-2014

Source: Zimstat 2014

7.3.1 Markets

Almost all cotton produced in Zimbabwe is exported as raw cotton. Cotton prices are directly linked

to the Liverpool Index where the lint price is set. Because this price has dropped significantly in the

last year as China hoarded a record amount of cotton in 2013, the ginners have had to pay a price

that is not attractive to farmers to grow the crop and subsequently the crop production decreased.

The reduction in cotton production in Zimbabwe was also caused by growers changing their cotton

cropping to the more lucrative tobacco.

Cotton seed is a by-product of the ginning process. Cotton seed is marketed locally as planting seed,

stock feed or ginned seed to the oil-expressing companies.


The capacities of the various cotton ginning companies in Zimbabwe are shown below. The current

ginning has an over-capacity of 650% of the current produced cotton crop.

Export Crops

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

20002001

20022003

20042005

20062007

20082009

20102011

20122013

2014

Year

Pro

du

ctio

nin

Mt

Tobacco Cotton


COMPANY GINNERY M/TAlliance Norton 44,550Cargill Chegutu 52,800China Africa Gweru 40,000

Glendale 25,000Cottco Chinhoyi 51,800

Chiredzi 25,000Gokwe 32,600Kadoma 29,700Muzarabani 32,600

Cottzim Karoi 21,000ETG Parrogate Checheche 20,500

Glendale 35,400Fahad Harare 13,200Grafax Mount Darwin 26,500

Sanyati 26,500Insing Rushinga 13,700Olam Nembudziya 30,000Romsdal Triangle 35,000Sinotex Kadoma 35,000Sinozim Harare 30,000Southern Cotton Tafuna 26,600Total All 647,450

In the past three years there have been a number of Chinese players who have entered the market

whilst local and Indian companies have scaled down or left the Industry.

The Textile Industry has seen a swifter demise from the year 2000 to 2008. Obsolete machinery in

the textile industry as a whole has seen the industry slump in its global competitiveness and the

Companies who are still operating are importing material, manufacturing garments and the re-

exporting finished products (Paramount Garments). In response to the fact that manufacturing

companies had long suffered from the effects of dumping second hand clothes, tariffs have since

May 2014 been put in place to protect the industry.

Dongenic Cotton Wool for Medical and Cosmetic use

Dongenic is the only producer of cotton wool products for surgical and cosmetic use in Zimbabwe.

Products produced are:

Pleated cotton wool;

Cotton puffs;

Cotton rolls;

Face pads;

Barr buds;

Alcohol swaps.The company is producing for the domestic market but is exploring exporting opportunities. In order

to compete internationally, investments in more sophisticated machinery are required.

The company purchases raw cotton lint which is cleaned and stamped into cakes, bleached and

dried. In a dry process the cotton wool is processed in its ultimate products and packaged for sale.


The major companies involved in oilseed processing are Olivine Industries, Unilever Zimbabwe,

United Refineries (Blue Ribbon) and National Foods.

7.3.3 Producers

Until the FTLRP of 2000, the Commercial Farmers produced some 50% of the cotton. Since then all of

the cotton is now coming from about 200,000 small scale farmers. Cotton turned out not popular

with the A2 farmers because of high labour and inputs requirements. A2 farmers cannot use their

land as collateral for bank loans and prefer growing cotton with finances from contracting cotton

ginners.

Map 2: Cotton growing areas in Zimbabwe

Inputs credit schemes have helped in improving cotton production. However, given the economic

hardships that the country is facing, the costs of seeds, fertilizers and chemicals have continued to

increase.

Repayment by growers of inputs supply has been in kind which has not worked in the favour of

farmers. Another factor that keeps the industry constrained is that marketing companies are no

longer paying strict attention to grading, emphasizing only on the volume of purchases.

7.4 CONCLUSIONS

Oil seed production is in a process of decline for different reasons. In particular cotton production is

facing challenges because it is an export cash crop unable to compete at the global market. Chinese

investors currently keep the cotton sector afloat.

On the other hand there is a stable local demand for soya bean based products, in particular cooking

oil. Oil seed processors only have limited capacity to provide growers with input finance because of

liquidity constraints. Consequently growers shift to more profitable crops, like tobacco.


8 HORTICULTURE

8.1 INTRODUCTION

Zimbabwe is very suitable for the production of a variety of Flowers, Stone Fruit, Vegetables and

Citrus fruit together with the production of plant material for bedding plants. Main reasons are:

Diversity of climates within the country;

Skilled, productive and low cost labour.

These were important reasons for foreign (in particular Dutch) investors to invest in the Horticultural

Industry in Zimbabwe for export reasons from the mid-eighties. In 2000, horticulture production was

at its peak with 600 hectares of roses, 900–1000 hectares of asters, solidago, hypericum and other

cut flowers. An estimated 1,200 hectares of fresh produce like mange tout peas, french beans and

Baby Corn was grown intensively mainly for the Dutch and UK fresh vegetable export market. An

estimated 200 hectares of stone fruit like peaches and approximately 400 hectares of apples and

several berries were produced in the Eastern Highlands. Furthermore 1,500 hectares of citrus was

produced intensively destined for regional and international consumption.

In the late 1990s, the horticulture sector reached its peak and was the second largest agricultural

foreign exchange earner after tobacco, recording export figures in 1999 of up to US$144 million.

During that period horticulture contributed an average of 4 percent to the Gross Domestic Product.

The FTLRP and economic crisis, however, resulted in a sharp decline of export volumes of

horticulture products which is illustrated in the figure below.

Figure 10: Development of export volumes of flowers, horticulture produce and citrus in the period 1986 -2010

Source: Horticulture Promotion Council

Zimbabwe’s horticulture regressed over the last decade, whereas in other parts of Africa horticulture

has boomed.

For instance, according to a 2007 Horticulture Export Comparison study, Kenya alone exported over 1

billion U.S. dollars’ worth of horticultural produce with Tanzania exports doing over USD$130 million.

With Kenya having over 500,000 employees and Tanzania having 40,000 employees, this makes the

horticulture industry in each of these two countries a major employer.


The horticulture industry in Tanzania consists of 8‐10 percent growth per annum making horticulture

one of the fastest growing industries.

8.2 PRODUCERS

Flowers

The total area of cut flowers produced in Zimbabwe at this moment is estimated at around 200-220

hectares (Ref HPC 2014. Currently, around 100 hectares of roses are grown in Zimbabwe, the main

growers are Flora Nova, Kiaora Flowers, Luxaflor and Mark Hopgood. Other products like Solidago,

Gypsophila, Asters, Hypericum and some seed raised products are mainly produced by Matt and

Mark Hopgood and Craig Dankwards and some smaller farmers in the Gweru area. Protea’s are still

being grown by Pinnfields in Ruwa and on a small scale in the eastern highlands under management

of the Dutch Flower Group (Conrad Archer) Danabe is a German owned company that produces

cuttings for indoor plants.

Of the entire horticultural production at that stage approx. 10% (mainly roses, asters and solidago)

are grown in greenhouses the remaining 90% are grown in the open field.

Fresh produce

Until 2000, the large scale commercial sector was relatively strong in the production of high value

crops such as peas, green beans, baby corn, lettuce, potatoes, Chinese cabbage, passion fruit,

mangoes, citrus, bananas, and pineapples but almost all operations closed down. Normally the fruits

got transported by road to Durban or Cape Town, from where they are shipped to their export

destination. Production of fresh produce currently is small holder farming, often with smallholder

farmers using less than 1 hectare.

Most rural households maintain vegetable gardens and produce vegetables for domestic

consumption and sell the surplus. Most of the crop is sold within the village, wholesale and municipal

markets in towns. Avocado is being grown in the Eastern Highlands by companies like Ariston

Holdings for export to the Middle East. Matanuska is producing banana at its plantations and by

contracted smallholder farmers for the domestic market.

Two categories of smallholder producers can be identified. The first category are located at irrigation

schemes in the communal areas. These largely practise horticulture from the irrigation scheme

established through collaborative efforts between the government and various donor agencies. The

second group of smallholder producers on the other hand are ‘beneficiaries’ of the land reform and

operate on land of former large-scale commercial farms.

Citrus

The Chegutu area (Mashonaland West) was a key citrus production area. Nowadays citrus is

produced here at A1 and A2 farms with only 400ha orchards still in reasonable health (source:

Chegutu Citrus). A small number of commercial citrus plantations are still operational and not

resettled. Mazowe Citrus Estate (part of Interfresh Holdings) is the country’s biggest citrus producer

(oranges, lemons, limes).

Early 2014, 23 percent of the estate (870 hectares) from Mazowe Estates was resettled making

future commercial citrus production at Mazowe estate uncertain. Forrester Estate is protected by

bilateral agreements between the Zimbabwe and German governments but partly has been

informally settled. Large commercial plantations still are operational in the Beitbridge area as well.


8.3 PROCESSORS AND TRADERS

In general, products in the horticultural value chains constitute a delicate category of products that

are subject to stringent criteria for quality standards, procurement, handling, transportation, and

storage due to the high perishable characteristic the constitute of. As a result, horticultural value

chains are characteristically short with relatively few transactions between the farmer and the

retailer.

Flowers

The flower producers process and pack the flowers themselves. All handling of export flowers and

produce is being done by the following Agents: FX Logistics, Jaccana, Barefoot and Rollex.

Fresh produce

Leading fresh produce processing and exporting companies are Selby Enterprises Pvt Ltd and Rollex.

Interfresh-Wholesale Fruiterers also was an important player but is facing operational challenges and

was delisted from ZSE recently.

The current main business of Selby is to supply the Zimbabwe local supermarkets of Pick n’ Pay/TM,

Spar, Bon Marche with a variety of vegetable and fruit products. The company has a relation with A

Bakker Barendrecht (NL) relation who supplies the Dutch Albert Heijn supermarket chain with Selby’s

produce. Next to the export to The Netherlands, Selby also supplies Woolworth of South Africa. Selby

– under the African Preservers name – has recently ventured into a canning (baked beans) line where

product is canned under various local labels like ProBrand, Spar and their own. With the recent

opening of the new Kentucky Fried Chicken franchise in Harare, Selby is developing the fresh/frozen

chips line supply to KFC. Other products Selby supplies KFC are cut lettuce, carrots and tomatoes

through the High Care unit.

Rollex is an integrated, international logistics provider with its core expertise in the air and road

freight of perishable produce. It operates a 3,000 m² refrigerated pack- and warehouse (Euro Gap

Certified) with an annex of 1,500 m² for general cargo storage. Rollex has also ventured into fruit &

vegetable production units with 4 farms in the Marondera area produce a wide range of products

with amongst them their main lines of mange tout peas, sugar snap peas and nectarines with some

smaller niche production of blue berries and straw berries.

Rollex has recently brokered a deal with The Stamina Group (SafariFresh). They consist of a number

of companies that are based in Kenya, the Netherlands and Asia and active in the fresh cargo and

fresh food sector. From The Netherlands SafariFresh supplies Albert Heijn with Rollex Zimbabwe

grown Mange tout and Sugar snap peas. The company uses MartinAir Cargo/KLM and Emirates to

airfreight their various pre-packed produce into the European markets.

Very few smallholder producers enter into contractual agreements with wholesale horticultural

procurement and processing companies, like Selby, Favco, Matanuska and Interfresh-Wholesale

Fruiterers. These companies supply to the local supermarkets or export to regional and international

markets.

Citrus

Leading Citrus processing company is Beitbridge Juicing Co (BBJ). BBJ is processing of citrus fruits into

juices and various by-products and started production in the Beitbridge area in 2006 and purchases

from plantations in the Beitbridge area.


BBJ is operating at approximately 23 percent capacity due to seasonality of processing and blending

of one fruit (oranges). BBJ supplies Schweppes Zimbabwe Ltd with 75 percent of the company’s

orange juice requirements for Mazoe Orange Crush, the most popular orange crush juice in

Zimbabwe. In 2014, Schweppes Zimbabwe Ltd (itself 51 percent Whaterton Investments and 49

percent held by Delta Beverages (Pvt) Ltd) acquired BBJ from Rift Valley Holdings. Chigutu Citrus is

operating in the Chegutu area at low capacity. They have plans to expand citrus processing to 64,000

MT in 8 years.

8.4 MARKETS

The combined export value of flowers, produce and citrus in 2012 was 81,883 MT (Horticultural

Promotion Council).

Flowers

Below the export value development of cut flowers and flower buds for bouquets, fresh or dried

from Zimbabwe is presented for the period 2010 – 2013.

Table 13: Export value development of cut flowers and flower buds, fresh or dried from Zimbabwe 2010 - 2013

Importers 2010 2011 2012 2013

World 201,056 185,772 334,117 9,274

Netherlands 121,591 148,400 180,778 6,569

South Africa 59,388 36,610 65 57

Germany 69 5 370 2,565

Zambia 11,468 0 0 0

France 215 134 0 0

Italy 244 6 0 0

Kenya 0 418 0 0

Kuwait 1,682 1 6 0

New Zealand 1,389 0 0 0

Singapore 279 128 0 0

Swaziland 3,849 0 0 0

Switzerland 687 20 152,765 0

United Kingdom 149 20 38 61Source: ITC calculations based on UN Comtrade statistics.

Flower exports show sharp variations in the three year period but drops sharply in 2013. Fluctuations

are resulting from the low number of flower producers in the country. Low 2013 were the result of

informal settlement challenges during elections which have been legally addressed. It is expected

that flower export will increase to 2012 levels in 2014 and exceed these levels in 2015.


Fresh produce

The table below presents typical fresh produce for export and domestic markets.

Table 14: Domestic and export produce

Domestic Export

Brassicas (e.g. cabbages) Mange Tout PeasKales French beans

Tomatoes Baby corn

Onions Sweet corn

Indigenous vegetables (pumpkin leaves, bean leaves, Chillies

Potatoes Baby carrots

Carrots Cherry tomatoes

Lettuce Sugar snap peas

Green pepper Goose berries

Gem squash Butternut

Fine beans Gem squash

Egg plant Baby marrow

Sweet potatoes

Butternut

Garlic

Source: Selby Enterprises

The main exports destinations for Zimbabwean fresh produce are The Netherlands, Germany, France

and Belgium.

Over 60% of the vegetables exported were destined for the UK market, although now South Africa is

increasingly becoming an important market. The peak export period for vegetables is during the

months of April/May to September.

Two types of domestic markets stand out in horticultural value chains: The traditional market system

characterised by open air markets, kiosks, street vendors and others are popular in most developing

countries, where the largest volumes of horticultural produce are directly sold. The open air markets

are mainly visited by the huge number of medium to low income households. You can identify three

different types of traditional markets:

The farm-gate markets involve direct sales by smallholders to wholesalers or retailers whothen transport to common markets (e.g. FAVCO and Matanuska).

Village markets are another type and these are regular markets within villages which usuallyact as the first assembly point for smallholder commodity groups.

The rural farm markets are the third type and are bigger than the village markets and activein moving the produce to the urban markets.

Secondly, the modern market system hosts the supermarket chains which can be small, middle-sized

or mega chains (Schipmann, 2006), and are guided by a more systematised procurement system with

high levels of quality and standard criteria. However, the traditional market system is likely to remain

the dominant centre of fresh produce marketing across the continent (Rearden and Timmer, 2007).

Zimbabwean markets have been in transition, following the agrarian reform changes.


Citrus

Citrus exports declined less sharply then flower and fresh produce exports. Exports volumes are

about 40 percent compared to 1999, the peak export year (source: HPC). Oranges are mainly

exported to Europe (50% of oranges), where they are sold on consignment from Hamburg in

Germany. It takes 90-120 days to get paid from Germany from the time when the fruits leave

Zimbabwe. Other export destinations are Russia (10%), Abu Dhabi and Saudi Arabia (15%) and Hong

Kong. Lemons are also sold in the Middle East. Passion fruits are sold mainly to Europe (Germany,

France, UK, Netherlands, and Belgium). Some avocadoes are being grown in the Eastern Highlands by

companies such as Ariston Holdings, and are being exported to the Middle East. Normally the fruits

get transported by road to Durban or Cape Town, from where they are shipped to their export

destination.

8.5 CONCLUSIONS

The flower and fresh produce industry have faced a decade of ongoing challenges resulting in

collapse. In particular the foreign owned producers and exporters of high value horticultural products

had and in some situations still have to fight claims on their business assets.

A small number of very dedicated and committed entrepreneurs have managed to keep their

businesses afloat and continue to manage to produce precious products for very demanding export

markets overseas. Zimbabwe still is a land in transition but progress towards normalisation has been

made.

The domestic market is not a real alternative for export yet as it is small and dominated by the

traditional market system. Competition to supply the supermarket chains is fierce.

The international market for Zimbabwean produced citrus is strong. Significant investments are

required to revitalize A1 and A2 controlled plantations.

9 LIVESTOCK

9.1 INTRODUCTION

The livestock sub-sector is an important and integral part of the agricultural sector with beef, dairy,small ruminants, pigs, poultry, apiculture, aquaculture and other small and emerging stock makingthe cog of the livestock industry. The sub-sector supports livelihoods of over 70% of the populationand contributes 19 per cent to the agricultural GDP, with a potential to increase this contribution to36% over the next five years if a committed genetic improvement program is rolled out country-wideAccording to the 2013 Mid-Term Fiscal Policy Statement of the Ministry of Finance, the contributionof the livestock sub-sector to the agricultural GDP (19.1 %) is greater than the contribution of manysub-sectors that attract much attention in agricultural policy.

The livestock sub-sector in Zimbabwe has undergone fundamental changes following the landredistribution exercise, which has increased the participation of many farmers (about 300,000 newlyresettled farmers) with varied skills and resources in livestock farming. The resettlement exercise hasresulted in significant shifts in ownership and use of livestock, with associated effects on livestockmanagement in terms of disease control, breeding, feeding, animal care and marketing.

World aquaculture production is increasing much more rapidly than animal husbandry and capturefisheries, the other two sources of animal protein for the world’s population.


There is a new consciousness that aquatic production from capture fisheries is nearing its peak thusaquaculture will become an important part of fish source. Zimbabwe being a landlocked country, itsmain source of protein is from animal husbandry. However the country is blessed with about 10,000dams creating a sweet water reservoir of about 4,000 sq. km within its boundaries. The increase inhealth consciousness is leading people to white meat, thus increasing the demand for fish.

9.2 MEAT AND DAIRY, PIGS, POULTRY AND EGGS

9.2.1 Producers

In the table below the regional division of the major livestock species in Zimbabwe is presented.

Table 15: Livestock numbers division by province

Province Cattle Sheep Goats Pigs

2012/13 2013/14 2012/13 2013/14 2012/13 2013/14 2012/13 2013/14

Mash West 739,442 773,569 132,135 130,021 105,789 111,003 81,217 85,278

Mash 514,966 509,289 40,746 38,977 281,645 268,877 62,658 65,790

Mash East 540,440 566,893 30,839 30,006 191,063 196,661 28,921 37,597

Manicaland 586,619 629,901 105,022 100,462 748,945 891,532 48,390 50,809

Midlands 689,175 712,693 91,330 93,796 531,034 499,703 22,576 26,904

Masvingo 1,039,013 1,039,666 17,084 17,904 357,612 368,722 24,403 25,623

Mat North 574,918 610,708 33,148 34,176 996,586 1,030,708 16,845 17,687

Mat South 556,619 525,387 74,696 76,265 551,326 574,068 30,990 32,539

Total 5,241,192 5,368,106 525,000 521,607 3,764,000 3,941,274 316,000 342,227Source: MoA 2013

Most important subsector in size is cattle. The pig sector shows most growth.

Cattle

It is estimated that currently 92 per cent of the over 5.2 million cattle in the country are owned bysmallholder farmers, mainly in the dry areas of the country and there is a potential for the nationalbeef herd to increase to 6.3 million head over the next five years.

To reach this potential it is important that present smallholder cattle is genetically improved byintroducing pedigree bulls in the rural household herds.

About 8% of the cattle population comprises exotic breeds in which the Brahman is the dominanttype. Other exotic breeds include:

The British breed Hereford

The continental European breeds, Simmental, Limousine, Charolaise, etc.

The synthetic breeds, Simbrah, Beefmaster, Santa Gertrudis, Bonsmara, etc.

The Indigenous breeds are dominant in the smallholder communal and resettlement areas andconstitute the bulk of the cattle population in the country. They comprise the Mashona, Nguni andTuli, with each breed type occupying specific geographical areas of the country.


Makera Cattle Company

Makera Cattle Company (Makera) started operations in 2005 and is operating the following beef

herds:

Brahman;

Simbra (Brahman and Simmental cross breeding);

Tuli (Zimbabwean breed).

Makera has developed an innovative cattle production concept by interbreeding its pedigree breeds

with communal cows resulting in stronger and more productive communal cattle. The offspring of

these cows are herded by communal farmers and the bulls are sold to Makera for fattening and

slaughter. The cattle feeds on natural products from the bush and is further fattened with maize,

cotton cake, organic vitamins and natural feed additives making it suitable for both fair trade and

organic certification.

Currently, Makera is working on duplicating the concept into other African countries.

Figure 11: Livestock – Beef and Dairy


Zimbabwe has a dairy cattle herd of about 26,000 head representing 0.5 per cent of the nationalcattle herd. The herd produced about 55 million litres in 2013. In the table below the monthly milkproduction in Zimbabwe for the period 2010 -2014 is presented.

Livestock

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

20002001

20022003

20042005

20062007

20082009

20102011

20122013

2014

Year

Kg/

Lt

Dai ry Beef (s laughters )


Table 16: Monthly milk production in the period 2010 -2014

Month 2010 2011 2012 2013 2014

Jan 3,419,076 4,147,528 4,519,340 4,783,325 4,586,860

Feb 3,520,932 3,780,655 4,024,268 4,114,696 3,971,596

March 3,791,812 3,997,131 4,265,844 4,422,363 4,510,930

April 3,535,061 4,006,650 4,354,210 4,367,170

May 3,721,286 4,160,577 4,596,053 4,441,293

June 3,749,035 4,101,905 4,611,712 4,361,772

July 4,064,473 4,352,584 4,943,659 4,581,131

August 4,241,343 4,476,975 4,993,219 4,806,548

Sept 4,453,410 4,287,726 4,787,577 4,571,390

Oct 4,040,900 4,487,674 4,910,202 4,581,425

Nov 4,191,821 4,122,423 4,816,118 4,560,279

Dec 4,458,944 4,681,517 5,107,492 5,075,703

Total 47,188,093 50,603,345 55,929,694 54,667,095 13,069,386Source: MoA 2013

Common commercial breeds include Friesland-Holstein, Jersey, Red Dane and Guernsey. Crossbredsbetween indigenous cattle and commercial dairy breeds are dominant in the smallholder dairy units.

Pigs

The pig industry has grown steadily since Independence. The national commercial sow herd currentlystands at 17,000 head and the non-commercial sow herd is estimated at 40,000. The sow herd in thehands of the smallholder sector is around 47,000 head. The total commercial pig population inZimbabwe is estimated at 300,000 head with 70% in the smallholder sector. Breeds kept byproducers include Landrace, Large White, Duroc and the indigenous Mukota.

The Mukota is the predominant breed in the small holder sector and the pigs are reared under anextensive management system mainly by farmers in communal areas and smallholder resettlementareas.

The exotic breeds are normally reared in confinement. Productivity and pig off-take from thesmallholder sector is low but there is great potential for growth if deliberate policies aimed atempowering smallholder pig producers are put into place.

Poultry and Eggs

Poultry has arguably been the fastest growing livestock sub-sector since the economic challenges in2008, with day-old-chick sales jumping from 12 million in 2009 to 55 million in 2012. In 2013, theproduction of broiler day old chicks was 64.4 million, an increase of 17% compared to the previousyear.

Supply of day old chicks is dominated by three major breeding companies (Ross, Crest and Irvine’s)which also produce and market poultry meat and eggs as well as operate contract grower schemes.About 60 per cent of the chicks are reared by small-scale producers who stock 100 – 200 birds intheir farms, plots and backyards.


Table 17: Broiler meat production in 2012 – 2013

Year 2012 2013 %

January 1,694 2,062 18

February 1,896 2,829 33

March 2,066 2,543 19

April 1,996 2,797 29

May 2,011 2,789 28

June 2,038 3,033 33

July 2,076 2,476 16

August 1,805 2,299 21

September 1,943 2,838 32

October 1,707 2,539 33

November 2,003 2,775 28

December 1,815 2,548 29

Total 23,050 31,528 37Source: ZimStat 2014

Average monthly broiler meat production increased from 1,920 in 2012 to 2,627 in 2013. Table eggproduction followed a similar trend.

Figure 12: Table egg production in 2012 - 2013

Source: Zimtrade 2014


Most of the beef produced in the country is marketed with minimal processing and value addition. In2013, the total cattle slaughtered was 325,974 producing 55,132 Mt of beef:

259,346 animals (80%) were slaughtered through the formal sector producing 44,089 Mt ofbeef;

66,628 animals (20%) were slaughtered through the informal sector producing 11,043 Mt ofbeef.


Figure 13: Monthly number of cattle slaughter (formal sector): 2010-2013

Source: ZimTrade 2014

All canned beef available on the market is imported. In the past, the Cold Storage Company (CSC,

formerly the Cold Storage Commission) was involved in the canning of beef, some of which was

exported. CSC also had rendering facilities which processed various by-products (hides, blood, bones,

horns, hoofs, dung), such that virtually everything from a beef carcass was collected and processed

into various products used in agriculture and the manufacturing industry. However, CSC’s canning

and rendering facilities are no longer functional, and the private abattoirs that are now the

predominant destination for slaughtering cattle do not have processing or rendering facilities.

So by-products from beef slaughter in the country largely go to waste, except for hides which are

sold to hide merchants. These merchants also have a network of buyers who collect hides from

private butchers throughout the country. Concerted efforts aimed at reclaiming the position of the

beef industry and associated value chains are therefore patently necessary.

Pigs

Contrasting to cattle, pigs slaughter shows an upwards trend in the period 2010 -2013.

Figure14: Monthly pigs slaughter trend at registered abattoirs 2010-2013

Source: ZimTrade 2014


Colcom Holdings (ZSE listed and majority owned by Innscor) produces pigs through its subsidiaryTriple C which keeps a herd of 2,200 sows. A part of the piglets are fattened by contractedsmallholders. Colcom processes pig meat in a wide range of products which are marketed under itsown brand as well as under its Danmeat and Oscar labels.

Dairy

Milk destined for sale to commercial processors is produced and delivered under cold chainconditions in order to ensure that the milk is delivered fresh. Most of this milk is packaged and soldfresh and the remainder is processed into pasteurised milk and other milk products with longer shelflife. Smallholder dairy units generally do not have cold chain facilities. Milk from these units isdelivered to collecting plants located at some rural service centres, which package and sell it as sourmilk and also do some processing into products such as yoghurt. However, milk processing plantsare generally operating below capacity because of the decline in milk production in the country.

Leatherwear

Zimbabwe currently has 15 tanneries operating at capacities of between 0% and 70%. These includeBelmont leather, Wet Blue, Prestige, Zambezi and Midrion enterprises, all in Bulawayo: ZimbabweBata shoe tannery in Gweru, Eagle tanning in Marondera and Imponente / Superior tanning inHarare. Imponente is producing about 18,000sm2 per month, followed by Bata 7 000m2 of leatherper month. Currently Imponente is operating on 30%.

Footwear Manufacturing companies are 49 and have operational capacities of 0% to 40%. Over thepast 10 years, more and more players in the leather sector have been emerging mainly as SMEs.Matabeleland districts including Matobo are the main suppliers of hides and skins to the leathervalue chain.

The main leather manufacturing companies in Bulawayo include Footwear & Rubber Industries (Pvt)Ltd for footwear manufacture, KARASONS Footwear (Pvt) Ltd for footwear manufacture, P.T. RoyalOstrindo (Pvt) Ltd for footwear, tanning and leather production, Salelane Enterprises (Pvt) Ltd forfootwear manufacturing, Safari Leathers (Pvt) Ltd for leather production, Goodhope Leather forleather production and Bata Shoe Company in Gweru.

Zimbabwe has two associations in the leather sector, namely Leather Institute of Zimbabwe (LIZ) andLeather and Allied Federations of Zimbabwe (LAIFEZ).

9.2.3 Markets

Meat, dairy, poultry and eggs all are produced for the domestic market. The value of Zimbabweleather exports was US$ 25 million in 2010. Countries with an export value over US$ 1 million areFrance (53.7%), Singapore (19.5%), Italy (11.5%), Japan (4.7%) and South Africa (4.3%) – ( Trademap).

Livestock consumption levels are particularly low in rural areas where the majority of the nationalpopulation resides. These low consumption levels are largely a result of the erosion of the purchasingpower of Zimbabweans over the past decade. The large gap between the actual and recommendedconsumption levels indicates the need for the livestock sub-sector to increase production andproductivity to meet domestic requirements with any surplus targeted for export.

The country currently requires an average monthly supply of eight million litres of milk for domesticconsumption against a supply of 4.5 million litres (March 2014). At its peak in 1994, the dairyindustry produced 300 million litres of milk from 383 registered dairy farms and the national dairyherd was about 105,000 head, including 53,073 milking cows. Milk surplus to national consumptionwas exported.


Currently, local supply of poultry meat and eggs is falling short of demand and this is largelyattributed to issues related to pricing and supply of production inputs, from stock feeds, day-old-chicks to veterinary products. While there are challenges in respect of inputs, the main reason is oneof uncompetitive pricing of the final product, pushing the bulk of smallholder and backyardproduction into the informal market where cash is more readily available.

9.3 AQUACULTURE

9.3.1 Introduction

Aquaculture or fish farming in Zimbabwe is a growing opportunity, with the world fish food

consumption sitting at an average of 15 Kg per annum against Zimbabwe with a merely 2 Kg/year

(Zambia at 8Kg/year), giving aquaculture for Zimbabwe a tremendous scope for increased fish

production.

Zimbabwe has no tradition of aquaculture, although the concept was first introduced as early as the

1950s. The main activities at that time were stocking farm dams and commercial trout farming in the

Eastern Highlands. Intensive research was also initiated at the then Henderson Research Station.

In the table below the significance of the aquaculture sector in Zimbabwe is illustrated. Aquaculture

production however is a mere 20% of what its neighbouring country Zambia is producing and just

over 0.01 % of the world’s total.

Table 18: Aquaculture production figures for Zanzibar, Zambia and Zimbabwe

Country Capture (Mt) Aquaculture (Mt) Total (Mt)

Zambia 76,214 12,988 89,202

Zanzibar 29,410 10 29,420

Zimbabwe 10,500 8,010 18,510

Total World 91,336,230 66,633,253 157,969,483Source: FAOStat

9.3.2 Producers

Approximately 70% of farmers are farming tilapia with Lake Harvest by far the largest player.However, the requirements to obtain permits to import non-indigenous species have beenconsidered a constraint by some producers. Trout were the next most important culture species,while catfish and carp farmed to a lesser degree.

Most fish farms are relatively small. A large number of farms use manure as the main nutrient inputbut a significant number use commercial fish feeds. Nearly 75% of farmers produce their own seedwhile 14%, mainly trout farmers, depended on National Parks for fingerlings.

9.3.3 Traders and Processors

African Century Foods is operating Lake Harvest, a pan-sub-Saharan African fish farm business andthe largest fish farming business in Africa. Currently African Century Foods is investing in afreshwater fish farm on Lake Kariba in north Zimbabwe. This farm will breed, grow, harvest, processand distribute Tilapia, an indigenous white freshwater fish. Lake Harvest ensures a complete controlof the value chain, from feed ingredients and breeding through to processing and delivery of the fishfillets, with the businesses fully integrated with own hatcheries, feed mills, lake-based cage farming,processing plants, refrigerated freight and distribution depots. Lake Harvest sells both fresh andfrozen fish products to the domestic and regional markets and exports fresh packed fish fillets toEuropean supermarkets.


9.3.4 Markets

Lake Harvest is producing for export markets, supermarket chains and the hospitality sector. Small

scale fish farming in dams is for farm workers' food and for recreational fishing.

There has been an emerging interest in freshwater aquaculture both for subsistence and commercial

purposes in the past decade.

The major focus on fisheries resources has been capture fisheries but freshwater aquaculture has

taken prominence in the recent past. The focus on freshwater aquaculture as an alternative to

increase fish production is attributed to threats of capture fishery from overfishing, climate change

and increased poaching caused by population growth in the face of limited employment

opportunities. The decline in fish catches over the past decade demonstrates the need for freshwater

aquaculture strengthening. Freshwater aquaculture provides an alternative deal for maximum and

sustainable utilization of the water resource. With over 10,000 medium to large sized water bodies

covering 3, 910km2, the country has considerable underutilized potential for freshwater aquaculture

development.

9.4 CONCLUSIONS

In contrast to the agricultural sector, some of the livestock sub-sector, particularly pigs and poultry,

in Zimbabwe have survived the political and economic crisis remarkably well. On the other hand the

levels of performance in terms of virtually all production indicators (reproductive, survival, growth

and off take rates, carcass characteristics) for large animal livestock production in all farming

systems, particularly in communal areas, are substantially lower than those achieved by similar herds

on research stations and other comparable countries. The reasons for the low performance are

varied and indicate that there is substantial scope for increasing the performance of the sub-sector.

Also the large animal livestock processing (especially the abattoirs) activities largely declined.

In particular cattle, pig and poultry production have shown growth in the last couple of years. There

still is a large gap between the actual and recommended consumption levels for protein indicating

additional demand for livestock products.

In contrast to North and Latin American meat production, the application of growth stimulants is

very limited in Zimbabwe. This is simply because cattle are primarily produced by smallholder

farmers who virtually have no access to and knowledge about growth stimulants.

Zimbabwe has 10,000 large and small freshwater reservoirs creating opportunities for aquaculture.

Large-scale industrial aquaculture is limited to one player. As mentioned in paragraph above this

certainly is not limited to one player with the country’s considerable underutilized potential for

freshwater aquaculture development.

By-products from beef and pig slaughter in the country largely go to waste, except for hides which

are sold to hide merchants. The leather industry is a small but in Zimbabwean terms significant

exporting sector. Exotic leather i.e. crocodile skin represent a high value niche market.


10 OPPORTUNITIES FOR DUTCH AGRIBUSINESSES

10.1 INTRODUCTION

In this chapter opportunities for Dutch companies in the agribusiness value chains in Zimbabwe are

presented. First of all business opportunities as well as the main players and risks involved are

identified in each of the subsectors under study are identified. Secondly the most promising business

opportunities are selected by considering the following criteria:

Role in the value chain (value added);

Business performance;

Business reputation;

Size of operations;

Business risks.

10.2 BUSINESS OPPORTUNITIES IN THE GRAIN SUBSECTORS

In the table below the opportunities in the grain subsectors, sub sector main players and the risks

involved are presented.

Sub-

sector

Opportunities Main players Risks

Maize Stable annualofftake of 2 mln MTwith local demandexceeding localproduction;

Arial application ofinputs reducesdiversion of inputsby farmers.

Agri Seed and Services (Pvt) Ltd(inputs)

Delta Holdings (processing);

National Foods – Innscor(production, processing);

Irvines Chickens – Innscor(consumption);

Origin Group (production);

ProFeeds (processing);

Peak Trading Pvt Ltd (inputs);

Shumba Milling (processing);

Windmill (Pvt) Ltd (inputs);

Zimbabwe Fertilizer Company Ltd(inputs).

History of governmentinterference in thegrain subsector;

Regulated crop;

Low value crop;

yield fluctuations;

Poor agriculturalpractices.

Wheat Local demandexceeding localproduction;

Arial application ofinputs reducesdiversion of inputsby farmers;

Limited domesticmilling capacity.

National Foods – Innscor(production, processing);

Origin Group (production);

Windmill (Pvt) Ltd (inputs);

Zimbabwe Fertilizer Company Ltd(inputs).

Irrigation required;

Local wheat notsuitable for breadproduction;

Poor agriculturalpractices;

Foreign wheatdumping.


10.3 BUSINESS OPPORTUNITIES IN THE TUBER CROPS SUBSECTORS

In the table below the opportunities in the tuber crops subsectors, sub sector main players and the

risks involved are presented.

Sub-

sector


Potatoes Enablingenvironment forpotato production;

High production persquare meter.

Informal traders. Poor agriculturalpractices;

No industrialdemand.

Cassava Growing industrialdemand;

Robustcharacteristics ofthe crop;

Flexible plantingand harvestingdates;

Nestle (processing);

Colcom Holdings – Innscor(consumption);

Unilever (processing);

Hunyani Pulp and Paper industry(processing).

No commercialcassava productionhistory;

No cassavaprocessing industry.

10.4 BUSINESS OPPORTUNITIES IN THE OIL SEEDS SUBSECTORS

In the table below opportunities in the oil seeds subsectors, sub sector main players and the risks


Sub-

sector


Cotton Market for cottonproducts formedical andcosmetic use.

Alliance (production);

Cargill (production);

China Africa (production);

Cottco (production);

Cottzim (production);

ETG Parrogate (production);

Fahad (production);

Grafax (production);

Insing (production);

Olam (production);

Quton (inputs);

Romsdal (production);

Sinotex (production);

Sinozim (production);

Southern Cotton (production);

National Foods - Innscor(processing);

United Refineries (processing)

Dongenic (processing)

Poor agriculturalpractices result insubstandardproduce;

Farmers move awayfrom crop becauseof low margins.

Soya Recapitalisation of Origin Group (production) Agricultural


Sub-

sector


beans oilseed processingindustry;

Arial application ofinputs reducesdiversion of inputsby farmers.

National Foods - Innscor(production, processing)

Surface Investments Private Ltd(processing);

Olivine Industries Private Ltd(processing);

National Foods - Innscor(processing);

Blue Ribbon Foods Ltd(processing);

United Refineries Ltd (processing).

productionchallenges;

Poor agriculturalpractices;

Cheap importalternatives ofvegetable oil.

10.5 BUSINESS OPPORTUNITIES IN THE HORTICULTURE SUBSECTORS

In the table below opportunities in the horticulture subsectors, sub sector main players and the risks


Sub-

sector


Flowers Enablingenvironment forflower production;

Flight connectionsto the Netherlands.

Flora Nova (producer);

Kiaora Flowers (producer);

Luxaflor (producer);

Mark Hopgood (producer).

Small domesticmarket;

Reliance on overseasexport markets;

Fluctuating of aircargo costs;

Uncertainty aboutfuture of air cargoconnections;

Exchange rate risks;

Complex logistics.

Fresh

Produce

Enablingenvironment;

Domestic demand;

Anti-cyclicalseasonalproduction fornorthern markets(including Europe).

Ariston Holdings (producer,wholesale);

Avanos Enterprises (Pvt) Ltd(inputs)

Better Agriculture Pvt Ltd(producer, export);

Interfresh Holdings (producer,wholesale);

Matanuska (producer);

Selby Enterprises (producer,processor);

Rollex (producer, processor).

Cold chainmanagement;

Fluctuating of aircargo costs;

Uncertainty aboutfuture of air cargoconnections;

Exchange rate risks.

Citrus Enablingenvironment;

Interfresh Holdings (producer);

Forrester Estate (producer);

Schweppes (processor).

Misappropriation ofplantations;

A1 and A2 plantationare poorlymaintained.


10.6 BUSINESS OPPORTUNITIES IN THE LIVESTOCK SUBSECTORS

In the table below opportunities in the livestock subsectors, sub sector main players and the risks


Sub-sector Opportunities Main players Risks

Cattle Organic and fairtrade meat;

Domestic supplyfalling short;

Canning of beef.

Agricura (Pvt) Ltd (veterinaryinputs);

Coopers ((veterinary inputs);

Makera Company (production);

Montana Meat (processing)

Local abattoirs and butcheries(processing).

Inbreeding;

Foot and mouthdisease;

Cold chainmanagement.

Dairy Domestic supplyfalling short.

Dairy Board (processing);

Kefalos (processing);

Cold chainmanagement;

No exportopportunities.

Pigs Demand forprocessingmachinery andequipment.

Demand for pigmeat from FarEast.

Colcom Holdings (production,processing)

Local abattoirs and butcheries(processing).

Cold chainmanagement.

Poulty and

eggs

Demand forprocessingmachinery andequipment.

Crest (production);

Irvine’s (production);

Ross (production).

Domesticcompetition.

Indigeneous

livestock

Internationaldemand for highvalue crocodile andostrich leatherproducts.

Royal Ostrindo (Pvt) Ltd(production, processing);

Padenga Holding (production,processing).

Aqua

culture

10,000 large andsmall freshwaterreservoirs;

Low fishconsumption.

Lake Harvest (production) No tradition in fishfarming;

Cold chain.

10.7 SHORTLISTED BUSINESS OPPORTUNITIES

The most promising business opportunities have been selected by considering the following criteria:

Role in the value chain (value added);

Business performance;

Business reputation;


Size of operations;

Business risks.

Below key information on promising business opportunities identified is presented. Detailed

information on each company and the opportunity, including contact information is provided in the

annex 3.

Company

name

Type of

Actor

Main activities Opportunity

Agri Seed

and Services

(Pvt) Ltd

Inputs Seed production:

maize, sorghum,

millet (mainly OPV),

cow peas and

groundnut.

Equity investment in order to finance

downstream expansion in value chain by

investing in oilseed processing (including

peanut butter production from groundnut)

and sorghum milling in order to diversify and

reduce dependency from seed sales.

Agricair (Pvt)

Ltd

Inputs Aerial application of

crop care chemicals

and fertilizer.

Looking for opportunities to lease additional

crop spraying planes in order to meet

growing demand in Zimbabwe and

Mozambique.

Avanos

Enterprises

(Pvt) Ltd

Inputs Vegetable seed

development,

production and

marketing.

Technical collaborating to utilise land not

contaminated by cross fertilisation in

Zimbabwe.

Better

Agriculture

(Pvt) Ltd

Production Production,

processing and

export of mange

tout, sugar snaps and

dried chillies.

Knowledge, equity and export partners to

develop export opportunities in horticulture.

Innscor

Africa

Production,

processing,

distribution

, retail

Production and

processing of grain

(maize and wheat)

and oil seed (soya

bean); production of

bread, trading grain,

pork meat

production,

processing and

marketing, retailing

of groceries, white

and brown goods,

fast food chain

management.

Innscor is interested in partnering with Dutch

companies in order to produce process and

export horticultural products to Europe.

Innscor is financially strong and is looking for

technical partners. Colcom and Irvine will

source for pork and poultry processing

machinery and equipment when domestic

markets pick up.


Company

name

Type of

Actor


Makera

Cattle

Company

Production Pedigree cattle

breeding and

production.

Import opportunity for organically grown fair

trade beef (Zimbabwe has a 9MT beef quota

for Europe which is not utilised). Equity and

knowledge partner needed for cold chain and

organic/fair trade registration process.

O'Enem

Meat

Products

(Pvt) Ltd

Processing Piggery and abattoir. Looking for equity and knowledge partner.

Capital required for stock-feed scheme,

power generating units and modernization of

facilities.

Organic

Africa Pvt Ltd

Production,

processing

Production,

processing and

exporting of organic

and fair trade

certified (Organic EU

and NOP, UEBT and

Fair Trade) herbs,

spices, aromatic

plants and

underutilised

indigenous species

into essential oils and

dried products by

way of extraction,

refining and drying.

Implementing partner for companies

intending to invest in fair trade and organic

agricultural production. Looking for exporting

partners. Supply of fair trade and organic

certified herbs, fruit and oilseeds at demand.

Origen

Group

Inputs,

production

Blending of

fertilizers, production

and bulking of grain,

soya bean and

wheat.

Equity partner for wheat milling facility.

P.T. Royal

Ostrindo

Zimbabwe

(Pvt) Ltd

Production Exotic leather

production i.e.

ostrich, elephant and

crocodile.

Export partner.

Padenga

Holding

Processing Crocodile breeding,

growing and

processing into

premium crocodile

leather and meat.

Export partner.


Company

name

Type of

Actor


Peak Trading

Pvt Ltd

Inputs Development,

production and

distribution of high

value seed products.

Distribution of

kapenta and mupani

worms

Equity partner for innovative agribusiness

projects.

Porsche

Investments

Pvt Ltd

trading as

Dongienic

Processing Production of cotton

wool products

including pleated

cotton wool, cotton

puffs, cotton rolls,

face pad, bar buds

and alcohol swaps.

Equity partner required for investing in

precision machinery and to develop export to

Europe and South Africa.

Selby

Enterprises

(Pvt) Ltd

Processing Processing,

packaging and

exporting edible

horticulture products

and fruit (mange

tout, sugar snap,

passion fruit, chillies,

gooseberries).

Producing stuffed

peppers at vinegar

for export.

Capital required to increase farmer

productivity and efficiency.

Star Africa

Corporation

Processing Sugar refining. Total

refining capacity of

250 000 tonnes.

Star Africa is diversifying upstream into value

chain by producing sugar itself and is looking

for agricultural partners.

Tapioca Zim

(Pvt) Ltd

Production,

processing

Production and

processing of

cassava.

Only commercial cassava producer in

Zimbabwe. Keen interest from industry and

stock feed sector for cassava based products.

Capital required for out-grower scheme

development.

Zimbabwe

Fertilizer

Company Ltd

Inputs Production of

Nitrogen (P),

Phosphorus (P) and

Potassium (P) based

fertilizers and agro-

chemicals.

Working and investment capital for reducing

short term finance costs and recapitalisation.


ANNEX 1: AN OVERVIEW OF THE MAIN KNOWLEDGE INSTITUTION RELATED TO AGRICULTURE INZIMBABWE

Institution Location Function

The International Crop Research

Institute for the Semi-Arid

Tropics (ICRISAT)

Bulawayo Agricultural research for sustainable development,

reducing rural poverty, improving food security,

improving nutrition and health, and sustainably

managing natural resources via donor funding.

ICRISAT collaborates with multilateral organisations,

including national and regional agricultural research

institutes, civil society organisations, academia and

the private sector.

International Maize and Wheat

Improvement Centre (CIMMYT)

Harare International research and training institution

dedicated to both the development of improved

varieties of wheat and maize, and introducing

improved agricultural practices to farmers, thereby

improving their livelihoods.

Art Farm Harare The Trust operates as an independent research,

demonstration, and training organization for

commercial farmers and is not bound by

government regulations and objectives.

Research and Specialist Services

(RSS)

Dotted around

Zimbabwe

On farm research activities on major crops.

Agritex Major Cities and

Branches in rural

areas

Mainly involved in extension research, agricultural

engineering and management services.

University of Zimbabwe Harare Training of Agricultural students at graduate level in

crop, animal, soil science, Agricultural Engineering

and Agricultural Economics.

Gwebi Agricultural College Mashonaland

Central

Produce agricultural graduates capable of delivering

agricultural support services in practical farming,

research, extension and farmer training.

Chibhero Agricultural College Mashonaland

Central

Produce agricultural graduates capable of delivering

agricultural support services in practical farming,

research, extension and farmer training.

Chinhoyi University of

Technology

Mashonaland West Biotechnology, Food Science and Technology and

Postharvest Science and Technology laboratories.

Agricultural Sciences and Technology is the Farm

Research, Teaching and Extension Unit and

Livestock section


ANNEX 2: INDUSTRY CAPABILITIES/CAPACITIES

Services Olivineindustries

NationalFoods

Surfaceinvestments

Blue Ribbon UnitedRefineriesLimited

Other smallprocessors

Processingcapacity(tons/year)

90,000 30 000 +100 000 30 000 80 000 20 000

Capacity(tons/day)

400 150400 (soya)400 (cotton)

ThroughOlivine

200 (soya)300 (cotton)

1- 15 (soya)1-15 (cotton)

Processingmethod

Solventextraction

Solventextraction

Solventextraction

Solventextraction

Solventextraction

Screw press

State ofProcessingplant

Plant is over 30years and

needs majorrefurbishment

Two majorplants in

Harare andBulawayo, 30

years old

Plant inChitungwiza, 3

years old and ingood condition

Based inBulawayo and

plant andmachinery are

old.

Stock at hand Nil 1500 Mt 4000 Mt Nil Nil >1000 Mt

Source of rawmaterial

Contracts,Open market,

imports

Contracts andopen market

Open market,contracts

Open market Open marketOwn farms,

open market

Toll crushingservices

Yes. Retainsmost oil and

Guards brand.Releases all

cake.



cake.



cake.

ProcessesthroughOlivine.

Little activitygoing on.

Yes. Releasesboth oil and

cake.

Raw materialcrushed

Soya andCotton

Soya andCotton

Soya andCotton

Soya andCotton

Soya andCotton

Soya andCotton

Previousexperiencewithcontracts

Works withLSCF.

Successful withsome ARDA

estates poor onothers. Nil SSC

Successful withLSCF. Nil SSC

Failed withARDA. Nil SSC

No contracts

Nil to date.New projects

underplanning.

Nil. Most ofthem are pig

growers, soyafarmers ordisplaced

growers gettinginto valueaddition.


ANNEX 3: COMPANY PROFILES

Agri Seed and Services (Pvt) Ltd

Contact:

Walter Chigodora

Managing Director

+263 (4) 700655

[email protected]

5 Wimbledon Drive, Harare

Activities:Seed production: maize, sorghum, millet (mainlyOPV), cowpeas and groundnut.

Background:Established in 1988 and third seed house in Zimbabwe. Shareholders: Walter Chigodora and KleinKaroo (South Africa). Using a 30 ha research farm incorporating a 4,300sq.m seed conditioning plantand warehouse, located at Mt. Hampden, 20kms north of Harare. Premises are owned by thecompany. Contracting commercial and small holder farmers: established smallholder out growerscheme with 1,500 farmers with Dutch and Australian support.

Performance:Government is major client but fails to pay the bills. Accumulated debt of government is $4 million.Other seed companies in Zimbabwe are facing same challenges.

Opportunity:AgriSeeds intends to move downward in value chain by investing in oilseed processing (includingpeanut butter production from groundnut) and sorghum milling in order to diversify and reducedependency from seed sales.

Agricair (PVT) Ltd

Contact:

Carl van der Riet

General Manager

+263 (772) 480863

[email protected]

Charles Prince Airport

P.O. Box 3683, Harare

Activities:General aviation. Aerial application of crop carechemicals.

Background:Established in 1965. Largest provider of aerial spraying services in Zimbabwe and fully CAAZcompliance. Before 2000 operating 22 planes. Current fleet: three spraying planes. Two planes needto be overhauled. New hangar on Charles Prince Airport close to Harare constructed. Executive Airfacilities next door used for maintenance and periodical checks.

Performance:Strong and increasing market for aerial spraying services in Zimbabwe. Managed to continueoperations in difficult environment but now only one serviceable plane available which is a risk forcontinuation of operation.

Opportunity:Looking for opportunity to lease crop dusting planes. Demand from Mozambique is growing andundersupplied because of large foreign investments in plantations. No domestic competition inMozambique. Compared to South Africa, Zimbabwe is geographically better positioned towardsmost of the under supplied markets in Mozambique. Farm operators in Mozambique often originatefrom Zimbabwe and are familiar with AgricAir.


Avanos Enterprises (Pvt) Ltd

Contact:

Ms. Marietta van der WerfManaging Director+263 (4) 293 [email protected] Alpes Road, Mount Pleasant, Harare

Activities:Vegetable seed development, production andmarketing.

Background:Established in 2001 as part of East West Group of Companies through capital injection fromHortigen BV. Independent company since 2005. Seed branded as East West Seeds but will graduallybe rebranded as Avanos. Operates research facility and employs seed researchers. Production atisolated farm to avoid cross fertilisation.

Performance:Annual turnover: $300,000. Profitable and domestically known for its quality seeds (onlycommercial vegetable seed developer in Zimbabwe). Other vegetable seed houses in Zimbabweimport generic cheaper seed from South Africa which is cheaper but with lower germinating rate.

Opportunity:Shortage of vegetable seeds worldwide and traditional vegetable seed production areas like Chilli,China and South Africa are fully utilised. Zimbabwe has abundance of non-contaminated farm landideal for vegetable seed production. Avanos is interested to collaborate with agribusiness toexpand high quality seed production in Zimbabwe.

Better Agriculture Pvt Ltd

Contact:

Peter Caminada

Director

+263 (0)712 601271

[email protected] Ashton road, Alexandra Park, Harare

Activities:Production, processing and export of mange tout,sugar snaps and dried chillies.

Background:Started operations in 2010. Growing, packaging and exporting mange tout and sugar snaps toEurope (400 MT per year) from its farm close to Harare International Airport. Operating warehouseat this farm. Contracting 1,000 smallholder farmers to produce chillies (800 MT). Main clients:Tabasco (export - wet chillies) and Nando's (dried chillies). Better Agriculture was vetted by andapplied successfully for financial support from TechnoServe and AECF. Global gap compliance.

Performance:Not profitable yet. Strong position in niche markets.

Opportunity:Better Agriculture is looking for knowledge, equity and export partners in order to develop exportopportunities in horticulture. The company operates a pack house close to the airport and is GlobalGap certified.


Innscor Africa

Contact:

Jeremy Brooke

Managing Director National Foods

+263 (0)4 [email protected] Stirling Rd, Workington, Harare

Activities:Production and processing of grain (maize andwheat) and oil seed (soya bean); production ofbread, trading grain, pork meat production,processing and marketing, retailing of groceries,white and brown goods, fast food chainmanagement.

Background:Innscor Africa (ZSE listed) is the largest conglomerate of companies operating in the food sector inZimbabwe. Main group companies: National Foods Holdings Ltd (ZSE listed): flour and maize milling,production of stockfeed and Fast Moving Consumer Products (pasta, rice, baked beans); Irvine'sZimbabwe (Pvt) Ltd: poultry and eggs; Colcom: pigs fattening and production and marketing of pigmeat; Innscor Bread (industrial bakery, national capacity: 450,000 loaves per day); Management ofSPAR retail outlets (major supermarket chain Zimbabwe); Management of fast-food chains (a.oChicken Inn, Pizza Inn, Nando's, Bakers Inn).

Performance:2013 group revenues: US$ 665 mln. Profit before tax: US$ 59.4 mln. Strong growth in flower millingbut maize milling is stable. Strong growth in bakery and fast food operations because of expansion.SPAR franchise operations are not profitable. Colcom has been suffering from equipment failures.

Opportunity:Innscor is interested in partnering with Dutch companies in order to produce, process and exporthorticultural products to Europe. Innscor is financially strong and is looking for technical partners.Colcom and Irvine will source for pork and poultry processing machinery and equipment whendomestic markets pick up.

Makera Cattle Company

Contact:

Max Makuvise

Director

+263 (0)4 [email protected] Oswald Close, Mt Pleasant, Harare

Activities:Pedigree cattle breeding, production and geneticimprovement of household herds.

Background:Established in 2005. Operating commercial beef herds: Brahman, Simbra (Brahman and Simmentalcross breeding) and Tuli (Zimbabwean breed). With AECF support, Makere is interbreeding itspedigree breeds with communal cows resulting in stronger and more productive communal cattle.Main markets are domestics retail chains.

Performance:Low profitability because of limited value added activities. There is a lot of international interest forthe Makera interbreeding concept. Makera beef is pro poor and organic. Makera is intending toreplicate its model in other African countries.

Opportunity:Import opportunity for organically grown fair trade beef (Zimbabwe has a 9MT beef quota forEurope which is not utilised). Equity and knowledge partner needed for cold chain and organic/fairtrade registration process.


O'Enem Meat Products (Pvt) Ltd

Contact:

Godfrey ChanetsaManaging Director+263 (772) [email protected] Village, Chiweshe Communal Land

Activities:Piggery and abattoir.

Background:Piggery and abattoir company incorporated in 1997 originating from a family pig breeding andfattening business operating since 1992. Export Process Zone status since 1998. Comprising a 300sow unit, pig fattening unit and an abattoir that is configured to slaughter both pigs and cattle.Facilities located at 90 km from Harare.

Performance:Underutilised because of capital constraints. Under new management from Australia. Owner wasmarketing Director with Coca Cola.

Opportunity:Equity partner required for capital investment ($800,000) and knowledge. Capital required forstock-feed scheme, power generating units and modernization of facilities.

Organic Africa Pvt Ltd

Contact:

Dominikus CollenbergDirector+263 (4) 88 53 [email protected] 22 Inverary Road,Pomona, Harare

Activities:Production, processing and exporting of organicand fair trade certified (Organic EU and NOP,UEBT and Fair Trade) herbs, spices, aromaticplants and underutilised indigenous species intoessential oils and dried products by way ofextraction, refining and drying.

Background:Started in 2007. Mainly exporting to Germany. Employment: 29; Turnover: $ 1 million. Germanowned and protected by Bilateral Investment Promotion and Protection Agreement (BIPPA)between Zimbabwe and Germany. Working with 3,500 out growers for growing herbs. Partneringwith NGOs to manage contract farming. Warehouse and processing centre in Christon Bank (10 kmfrom Harare). Operating largest mobile distilling in Zimbabwe to produce essential oils at farms.

Performance:Planning for revenue increase to $10 million in 5 year time because of strong demand for organicherbs and essential oils.

Opportunity:Implementing partner for companies intending to invest in fair trade and organic agriculturalproduction. Looking for exporting partners. Supply of fair trade and organic certified herbs, fruitand oilseeds at demand.


Origin Group

Contact:

Rob Hoard

Group Director

+263 (0)4 303021

[email protected]

7 Seagrave Road, Avondale, Harare

Activities:Preparation of fertilizers, production and bulking ofgrain, soya bean and wheat.

Background:Started as a grain brokerage business in 1993. Now group of companies specialised in grain andsoya bean production and distribution. Supplying Innscor and Olivine. Currently 6,000 ha maize andsoya bean and 1,000 ha wheat under contract. Efforts are put in capacitating farmers.

Performance:Margins are low. Demand for soya beans and wheat is strong (only 33 percent of domestic demandfor wheat is grown domestically). The company has access to domestic and foreign capital and canfinance operational expenses.

Opportunity:Equity partner for wheat milling facility.

P.T. Royal Ostrindo Zimbabwe (Pvt) Ltd

Contact:

Rudolph Darck

Managing Director

+263 (9) 488733

[email protected]

37 Silver Crescent, Kelvin West, Bulawayo

Activities:Exotic leather production i.e. ostrich, elephant andcrocodile.

Background:Established in 1996, 58 employees. Specialise in the banning and marketing of exotic leather i.e.elephant and crocodile skins.

Performance:current turnover: US$2 mln

Opportunity:Export partner

Padenga Holding

Contact:

Gary SharpCEO+263 (4) 291 [email protected] Borrowdale Rd, Gun Hill, Harare.

Activities:Crocodile breeding, growing and processing intopremium crocodile leather and meat.

Background:Was part of Innscor but now operating independent. Operating three crocodile farms located onthe shores of Lake Kariba. ZSE listed.

Performance:Current turnover: $27 million (book year: 18 months); profit before tax: 4.9 million (book year: 18months).

Opportunity:Export partner


Peak Trading Pvt Ltd

Contact:

Rob KellyDirector+263 (772) [email protected] Souter Road, New Arbennie, Harare

Activities:Development, production and distribution of highvalue seed products. Distribution of kapenta andmupani worms

Background:Company started as agriculture commodity trading company 10 years ago primarily operating insoya bean and grain (maize, millet, sorghum). Increasing focus on managing the upstream supplychains by developing activities in seed and agriculture commodity production. Peak tradingoperates as a growing network of interrelated small companies and businesses.

Performance:N.a. Small company.

Opportunity:Equity partner for innovative agribusiness projects. Investments from $50,000.

Porsche Investments Pvt Ltd trading as Dongienic

Contact:

Ramin KhalatbariDirector+263 (0)772 [email protected] 2&3 Sunway City Industrial Park,Msasa, Harare

Activities:Production of cotton wool products includingpleated cotton wool, cotton puffs, cotton rolls, facepad, bar buds and alcohol swaps.

Background:Porsche Investments Pvt Ltd is a family business operating in cotton wool production andhospitality. Cotton wool product for surgical and cosmetic use are produced at a plant with acapacity to process 40 MT cotton per month. Only serving domestic market. Employment: 40.

Performance:Annual revenues: 6 million; net profits: 15%; Current capacity utilization: 40%.

Opportunity:Equity partner required for investing in precision machinery as Porsche Investments prefers toinvest in higher risk and higher return sectors outside agriculture. Precision machinery will make thefactory internationally competitive. Export to Europe and South Africa. It was noted that in Europeonly 5 comparable factories are operating (a.o. in Italy and Poland) and in South Africa only one. Nosignificant cotton production in Europe and South Africa. Proposed machinery supplier: LINKS Srl(http://www.links-srl.it).


Selby Enterprises (Pvt) Ltd

Contact:

96 Central AvenueP.O. Box CY982, Causeway, HarareFarm: 15.5km peg Golden Stairs Road, Harare

Activities:Exporting and supplying local supermarkets with:

beans, Strawberry pulp, frozen vegetables,

Gooseberry pulp, Passion fruit pulp, Guava,

Chillies, Fresh garlic, Sweet corn, Baby corn,

Mange tout, Preserved fruit and vegetables,

Fresh physalis, Sugar snap, Frozen fruit pulp,

Passion fruit.

Background:Started operations in 1989. In 2000 the farm was bought with some basic infrastructures presentbut has since been build up by Selby to a full fletched vegetable growing and handling complex,with a pack-house including a high Care unit (3,000m2 packing facility, 1,500m2 cold rooms andfreezer complex). Contracting about 12 farmers and smallholder farmer. Typically 75% of volumeexported to mainland Europe.

Performance:Present production and handling capacity is around the 500 Mt produce annually of which 80% is

sold on the Zimbabwe markets. Part of the production is done by small-scale out growers.

Selby – under the African Preservers name – has recently ventured into a canning (baked beans)

line where product is canned under various local labels like ProBrand, Spar, and their own.

With the recent opening of the new Kentucky Fried Chicken franchise in Harare, Selby is developing

the fresh/frozen chips line supply to KFC. Other products Selby supplies KFC are cut lettuce, carrots

and tomatoes through the High Care unit.

Opportunity:Equity investment required to expand export and to increase its grower base.


Star Africa Corporation

Contact:

Sam MushiriDirector+263 (0)772 [email protected] Douglas Road, Workington, Harare

Activities:Sugar refining. Total refining capacity of 250 000tonnes.

Background:Star Africa (ZSE listed) was producing a wide variety of FMCP during the hyperinflation era but hadto stop operations shortly after the introduction of the multicurrency system because ofaccumulating debts. Under new management the company focus on its core activity (sugarrefining). Production of refined sugar started end of September 2014. Daily refining capacity is 600MT but only a fraction is utilised now. Clients include Delta Beverages and Schweppes (soft drinks),confectionaries and Dairy Board (yoghurt). Main shareholders are National Social Security Authority(NASSA - 18%), ZSR Investments UK (14 percent) and Old Mutual. Star Africa successfully lobbied forlimiting the import of refined sugar. Raw material is provided by Hippo Valley Estates Ltd.

Performance:Domestic refined sugar market is protected for two years because of anti-dumping law. This time isneeded to continue recapitalisation. Original production equipment is from the 1950s.

Opportunity:New machinery from India was installed but maintenance costs are high. Star Africa needs morereliable machinery and equipment. Market is protected for the next two years and refined sugardemand is exceeding supply. Star Africa wants to diversify upstream into value chain by producingsugar itself and is looking for agricultural partners.

Tapioca Zim (Pvt) Ltd

Contact:

Andrew LawsonManaging Director+263 (0)772 [email protected] Thames Road, Vainona, Harare

Activities:Production and Processing of Cassava.

Background:Only commercial cassava producer and processor in Zimbabwe. Keen interest from industry andstock feed sector for cassava based products. Capital required for out grower scheme development.

Performance:Greenfield operation launching new commercial crop in Zimbabwe.

Opportunity:Capital required US$ 100,000 for out-grower scheme development.


Zimbabwe Fertilizer Company Ltd

Contact:

Richard DafanaManaging Director+263 (4) [email protected] Coventry Road, Workington, Harare

Activities:Production of Nitrogen (P), Phosphorus (P) andPotassium (P) based fertilizers and agro-chemicals.

Background:Leading fertilizer producer in Zimbabwe and prime brand with smallholder farmers. Mainshareholders are government owned Chemplex Corporation (50%), YZ Holdings and TA Holdings(ZSE listed). Main suppliers are Sable Industries and Zimbabwe Phosphate Industries (partly ownedby Chemplex). 300 employees.

Performance:Turnover $ 80 million. Annual challenges raw material finance delays production. Zimbabweangovernment is a main client but also has a poor payment track record which is a risk. ZFC indicatesthat government has met its payment obligations. Production process is outdated and can bemechanised and modernised. Recapitalisation is required.

Opportunity:Looking for working and investment capital. Working capital: $10 - $20 million needed forseasonally financing raw material purchase. Current financing arrangements are expensive.Financial arrangement through direct borrowing or structured deal and repayment after 90 days.Investment capital needed for recapitalisation. TA Holding intending to divest from ZFC.


ANNEX 4: LIST OF PERSONS INTERVIEWED

Organisation Activities Name Title

ABS TCM (Pvt) Ltd Stock Feeds Dr. Nathaniel F. Makoni Managing Director

Agri Seed and Services (Pvt) Ltd Seeds Walter Chigodora Managing Director

Agricair (Pvt) Ltd Agricultural aviation Carl van der Riet General Manager

APT NGO Michael Dawes Director

Aquafeeds (Pvt), Baskem Ltd. Aquaculture & Fishfeed Gerry McCollum Director, consultant

Avanos Enterprises (Pvt) Ltd Seeds production Ms. Marietta van der Werf Managing Director

BCSDZ Business Association George Foot Secretary

Better Agriculture Pvt Ltd Horticulture Peter Caminada Director

Delta Beverages Brewery and soft drinks Tichafa Rinomhota Technical Director

Dongienic Cotton wool Ramin Khalatbari Director

FX Logistics Logistics Stuart Sprake Director

Horticulture Promotion Council Trade organisation Basillio Sandamu Advisor

KLM/Martinair Airfreight Nick Haselden Freight Manager

Luxaflor Flowers Aart Nugteren Director

Makera Cattle Company Cattle breeding Max Makuvise Director

National Foods Grain and oilseed milling Jeremy Brooke Managing Director

O'Enem Meat Products (Pvt) Ltd Meat processing Godfrey Chanetsa Managing Director

Organic Africa Pvt Ltd Essential oils Dominikus Collenberg Director

Origin Group Agriculture Rob Hoard Group Director

Peak Trading Pvt Ltd Seeds Rob Kelly Director

PHI Commodities Grain trading Gary Booth Managing Director

Pig Procurement Association Association Godfrey Chanetsa Chairman

Rollex Horticulture and logistics Edwin Moyo Director

SAT NGO Brian Saunders Project Coordinator

Selby Enterprises (Pvt) Ltd Horticulture Mr. Adam Selby Director

Silverstreet Capital Investor Gary Vaughan-Smith Partner

SNV NGO Elton Mudyazvivi Programme Manager

SNV NGO Waddilove Sansole Inclusive BusinessAdvisor

Star Africa Corporation Sugar refining Sam Mushiri Director

ZADT Finance Mbekezeli Mthunzi Chairman

Zimbabwe Fertilizer CompanyLtd

Fertilizers Justice Chamuka Marketing Manager

Zimbabwe InvestmentAuthorities

Investment promotion Nigel Chanakira Chairman

Zimbabwean AbattoirAssociation

Association Godfrey Chanetsa Chairman


ANNEX 5: USEFUL WEBSITES FOR FURTHER READING

Organisation Description Link

Agricultural Research Trust CFU research farm http://www.artfarm.co.zwBankers Association of Zimbabwe Financial sector information and developments http://www.baz.org.zw

Chibhero Agricultural College (Institute of Environmental Studies) Farming college. http://www.ies.ac.zw/chibhero.html

Chicago Board of Trade Global agricultural commodity product market indexes. http://www.cmegroup.com/trading/agricultural

Commercial Farmers Union of Zimbabwe (CFU) Background information on land reform process in Zimbabwe http://www.cfuzim.org

Confederation of Zimbabwe Industries Manufacturers association http://www.czi.co.zw

Delegation of the European Union to Zimbabwe EU delegation portal with EU policy and project information http://eeas.europa.eu/delegations/zimbabwe/index_en.htm

Department Research and Specialist Services (DRSS) Crop research institute. http://www.drss.gov.zw

Embassy of the Kingdom of the Netherlands in Harare Dutch Embassy http://zimbabwe.nlembassy.org

Food and Agriculture Organization of the United Nations Zimbabwe country website http://www.fao.org/countryprofiles/index/en/?iso3=ZWE

FX Logistics International logistics services provider http://www.fxlogistics.biz

Gwebi Agricultural College Farming college. http://www.gwebiagric.ac.zw

Law Society of Zimbabwe Zimbabwean legal practitioners l isting https://www.lawsociety.org.zw/directory.html

Ministry of Finance and Economic Development Link to Zimbabwe Agenda for Sustainable Socio-Economic Transformation 2013 www.zimtreasury.gov.zw/zim-asset

Ministry of Justice, Legal and Parliamentary Affairs Legal affairs department http://www.justice.gov.zw

Shipping and Forwarding Agents' Association of Zimbabwe

(SFAAZ)

Voluntarily shipping association http://www.sfaaz.org/

SNV Netherlands Development Organisation Zimbabwe Dutch NGO promoting market based development solutions in agriculture http://www.snvworld.org/en/countries/zimbabwe

Technoserve Zimbabwe US NGO promoting market based development solutions in agriculture http://www.technoserve.org/our-work/where-we-work/country/zimbabwe

The Business Council for Sustainable Development Zimbabwe Zimbabwe chapter of World Business Council for Sustainable Development (WBCSD) http://www.bcsdz.co.zw

The Zimbabwe Legal Information Institute (ZimLII) Legal information portal. http://www.zimlii.org

University of Zimbabwe Academic agriculture research and education in agriculture. http://www.uz.ac.zw

Zimbabwe Agricultural Development Trust (ZADT) Subsidised loan facil ity for financing business in rural areas http://www.zadt.co.zw

Zimbabwe Commercial Farmers Union (ZCFU) Indigenous Commercial Farmer Union http://www.zcfu.org.zw

Zimbabwe Government Government portal http://www.zim.gov.zw

Zimbabwe National Statistics Agency (ZIMSTAT) National statistics bureau http://www.zimstat.co.zw

Zimbabwe Situation (private initiative) News portal on Zimbabwe http://www.zimbabwesituation.com

Zimbabwe's Farmers Union (ZFU) Smallholder farmer Union http://www.zfu.org.zw


ANNEX 6: KEY VALUE CHAIN ACTORS

Company name Type Address Telephone Activities Url

ABS TCM FeedsProduction,processing

4 BannockburnClose, MountPleasant, Harare

+263 4 301 071+263 712 402 221

Stockfeed processing

African Century Limited/ Lake Harvest

Production153 JosiahChinamanoAvenue, Harare

+263 4 705503 Aquaculture and Fish feed www.africancentury.co.zw

Agri Seeds and Services(Pvt) Ltd

Inputs5 WimbledonDrive, Harare

+263 (4) 700655Seed production: maize, sorghum, millet (mostOPV), cow peas and groundnut.

www.agriseed.co.zw

Agricair (Pvt) Ltd Inputs

Site 24 CharlesPrince Airport,Harare,Zimbabwe

+263 (772) 480863Aerial application of crop care chemicals andtop dressing.

www.agricair.com

Agricura (Pvt) Ltd Inputs62 BirminghamRoad, Harare

+263 (4) 662571 Crop chemicals, veterinary dips and remedies.

Aquaculture Zimbabwe Production16 NorthamptonCrescent,Eastlea,

+263 (4 )788259 Fish production www.aquaculturezim.org

Ariston Holdings (Pvt)Ltd

Production306 HillsideRoad, Msasa,Harare

+263 (4) 704949Producer, wholesale and marketing of tea,pommes & stone fruit, fresh produce, potatoseed, poultry and macadamia nuts.

www.ariston.co.zw

Avanos Enterprises (Pvt)Ltd

Inputs52 Alpes Road,Mount Pleasant,Harare

+263 (4) 293 094 Vegetable seed production and marketing www.ewszim.co.zw

Bain Farm EquipmentDivision

Inputs35 Douglas Road,Workington

+263 (4) 664794 Agricultural machinery and spares

Border Timbers LtdProduction,processing

Aberdeen Road,Mutare

+263 (20) 64224Forestry, sawmilling and manufacturing ofwood products.

www.bordertimbers.com

British AmericanTobacco ZimbabweHoldings Ltd

Processing1 ManchesterRd, Southerton,Harare

+263 (4) 754737Manufacturing and marketing of cigarettesand pipe tobaccos.

www.bat.com

Cairns Food Ltd. ProcessingUpton Road,Ardbennie,Harare

+263 (4) 620 441/9 Food and beverage manufacturer www.cairnsfoods.co.zw

http://www.aquaculturezim.org/

http://www.bat.com/

http://www.cairnsfoods.co.zw/


Carswell MeatsProcessing,wholesaler

183 WillowvaleRoad,Southerton,Harare

+263 (4) 612 400Meat products, abbatoir, retail & wholesalemeat supplier

CFI Holdings LtdProcessing,distribution

1 Wynne St,Harare

+263 (4) 791260Poultry breeding, processing and marketing;poultry stock feed; retailing and agriculturalinputs.

www.cfigroup.co.zw

Colcom Holdings Ltd Processing1/3 Coventry Rd,Workington,Harare

+263 (4) 751051 Meat processing. www.colcomfoods.com

Cottco Holdings Limited Production1 Lytton Road,Workington,Harare

+263 (4) 749458 Cotton production and sales. www.cottcoholdings.com

Crostel Pvt Ltd ProductionNyamagodaFarm, Macheke

+263 798 540 Vegetables

Cure Chem Overseas PvtLtd

Distribution32, AnthonyAvenue, Msasa,Harare

+263 (4) 490500 Crop chemicals www.curichem.com

Dairibord HoldingsLimited

ProcessingZB Life Towers,77 Jason MoyoAvenue, Harare

+263 (4) 790801Processing and marketing milk products, juicesand mineral water.

www.dairyboard.com

Farmers WorldZimbabwe (Pvt) Ltd

Inputs

Bldg 28TranstobacEstate, HillsideRd, Msasa,Harare

+263 (4) 481960 Agricultural equipment

PROfeeds - PRObrandsProductionprocessing

82 WoolwichRoad,Willowvale,Harare

+263 (4) 667173 /666960 / 661048 /661295

Stock feeds and food specialists in householdconsumable goods

www.progroup.co.zw

Hippo Valley EstatesLimited

ProductionHippo Valley,Chiredzi

+263 31 3141Growing and milling of sugarcane and otherfarming operations

www.huletts.co.za/ops/zimbabwe.asp

Hunyani HoldingsLimited

Production68 BirminghamRd, Southerton,Harare

+263 (772) 131 349Growing and processing timber. Paper basedpackaging material for various industries

www.hunyanizim.com

http://www.progroup.co.zw/


Impala Seeds Pvt. Ltd InputsP.O. Box 292,Bulawayo

+263 (9) 79634 Distribution and sales of seeds

Innscore Africa Ltd

Production,processing,distribution,marketing

Edward Building,Corner 1st Street/ NelsonMandela Av.,Harare

+263 (4)496886/790

Bakeries & Restaurants, Distribution, Spar,Colcom, Household goods, Milling, Poultry,Packaging, Adventures

www.innscorafrica.com

Intercrop (Pvt) Ltd Production

Ximex Part, 16.5km pegLomagundi Rd,Westgate,Harare

+263 (4) 308860 Crop inputs - Seeds, Chemicals, Fertilisers www.interfresh.co.zw

Interfresh Holdings LtdProduction,distribution

3 Ramon Road,Graniteside

+263 (772) 130243 Citrus fruit, vegetables www.interfresh.co.zw

Irvine’sProductionbreeding

Henley DriveExtension,Waterfalls,Harare

+263 772 131973/982

Poultry breeding, processing and marketing

www.innscorafrica.com/brands/irvines

Lake HarvestAquaculture

Production153 JosiahChinamanoAvenue, Harare

+263 (4) 253 514 Production of tilapia and dried kapenta www.lakeharvest.com

Lomag Export (Pvt) Ltd Production9 Cameron Road,Pomona, Harare

+263 (4) 885645Grass seed production and export (Katambora,Rhodes, Chloris Guarna), distribution ofirrigation equipment

www.lomagagric.com

Luxaflor Roses (PVT) Ltd ProductionPost Office box:129, Concession,Zimbabwe

+263 (756) 2434 Breeding and production of roses

Makera Cattle CompanyCattleBreeding

3 Oswald CloseMount Pleasant,Harare

+263 (4) 744 356Commercial cattle breeding and geneticimprovements

www.makera.co.zw

National Foods HoldingsLtd

Production

Gloria House, 10Stirling Rd,Workington,Harare

+263 (4) 753 751 Grain bulking and milling, food processing. www.natfood.co.zw

National Tested SeedsProduction,sales

750 LorraineDrive, Bluff Hill,

+263 (4) 2931535Hybrid and open pollinated seed production,distribution and retail of agricultural inputs.

www.kencor.co.zw

http://www.interfresh.co.zw/

http://www.interfresh.co.zw/

http://www.makera.co.zw/


Harare

Nico Orgo Pvt Ltd Inputs

Stand no. 090,2nd Avenue,Belvedere,Harare

+263 (713) 328 369 Blended fertilizers and agricultural products

Northern Tobacco Production

4-12 PaisleyRoad,Southerton,Harare

+263 (4) 754 742 Tobacco production www.nt.co.zw

Nutriveg Processing5 ShamwariRoad, Stapleford,Harare

+263 (772) 300 207+263 (4) 481 319

Dehydration of vegetables www.nutrifresh.co.zw

O'Enem Meat Products(Pvt) Ltd

ProductionTaruvingaVillage, ChiwesheCommunal Land

+263 (772) 207439 Piggery and abattoir www.o'enefresh.co.zw

Olivine Industries Processing

Cnr Birmingham& Plymouth Rd,Southerton,Harare

+263‐4‐754556/64 Proceesing of oilseeds into edible oils www.olivine.co.zw

Omnia Nutriology Inputs

Block F DelkenComplex, MtPleasantBusiness Park,Harare

+263 (4) 369393Blending and distribution of fertilizer and cropchemicals

www.omnia.co,za

Organic Africa Pvt Ltd Production22 InveraryRoad, Pomona,Harare

+263 (4) 88 53 51Production of organically and fair tradecertified essential oils and dried herbs.

www.organicafrica.biz

Peak Trading Trading1591 Soutter Rd,New Arbennie,Harare

+263 (4) 667 560/1Agricultural commodities trading andmarketing

P.T. Royal OstrindoZimbabwe (Pvt) Ltd.

Production37 SilverCrescent, KelvinWest, Bulawayo

+263 (9) 488733Exotic leather production i.e. ostrich, elephantand crocodile.

[email protected]

Padenga HoldingsLimited

Production121 BorrowdaleRd, Gun Hill,Harare

+263 (4) 291 6048Crocodile farming and processing (meat andleather).

www.padenga.com

http://www.nutrifresh.co.zw/

http://www.o'enefresh.co.zw/


Pedstock Investments Inputs

Cnr HarareDrive/AlpesRoad, MountPleasant, Harare

+263 (4) 851690Distribution of seeds, seedlings, irrigation,greenhouse plastic, gardening equipment,fertilisers, bakery services

Pioneer HI BRED Inputs

Mutual Gardens,100 The ChaseWest, EmeraldHill, Avondale,Harare

+263 (4) 339301 Seeds and Chemicals www.pioneeer.com

PMT EntrepriseMatanuska Pvt Ltd

ProductionAbercorn Street1, Harare

+263 (4) 75 6776Production, marketing and sales of fruits andvegetables

Polachem Agro-dealer104 1st Avenue,Harare

+263 (772) 918 502 Various Agro chemical distributor

Premier MillingHighfield road,Southerton,Harare

+263 (4) 665 661/5 Grain milling and marketing

Prime Seeds Inputs318 HillsideRoad, Masasa,Harare

+263 (4) 480 501 /447 114

Seeds, seedlings, chemicals

Progene Inputs1A Kent Road,Chisipite, Harare

+263 (4) 443 828/9 Seed breeding, research, testing www.progeneseeds.co.zw

RollexLogisticsandproduction

New CargoVillage, BidfreshComplex,InternationalAirport, Harare

+263 (4) 575777/692

Transport logistics and production, export offresh fruit and vegetables

www.lonrho.com

Ross BreedersZimbabwe (pvt) ltd

Productionbreeding,feeds

46 Kaguvi Street,Harare

+263 (4) 756 004Day old chicks-broilers and layers, hatchingeggs, poultry feed and vaccines

Schweppes ZimbabweLtd

Production67a WoolwichRoad, Willovale,Harare

+263 (4) 620231Fruit processing, production of cordials, fruitjuices, bottled water and flavoured drinks

www.schweppes.co.zw

Seed Co Limited InputsShamwari Rd,Stapleford,Harare

+263 (4) 882485Developing and producing hybrid and non-hybrid cereals and oil crop seed varieties.

www.seedco.co.zw

http://www.pioneeer.com/

http://www.progeneseeds.co.zw/

http://www.lonrho.com/


Selby Enterprises (Pvt)Ltd

ProductionKomani Farm,12.5 Km PegGolden Stairs Rd

+263 (4) 307472

Processing, packaging and exporting ediblehorticulture products and fruit (mange tout,sugar snap, passion fruit, chillis, gooseberries).Producing stuffed peppers at vinegar forexport.

www.selby.co.zw

Servcor Pvt Ltd Distribution

47 PlymouthRoad,Southerton,Harare

+263 (4) 620301 Fresh food processing and catering services www.servcor.co.zw

Suncrest Chicken (Pvt)Ltd

ProcessingAmalinda road,Harare

+263 (4) 690 491-5 Various Fresh and Frozen poultry products www.suncrest.co.zw

Windmill (Pvt) Ltd InputsWestgate HouseWest, LorraineDrive, Harare

+263 (4) 334911Manufacturing and distributing fertilizers, cropchemicals, animal health products andspecialty fertilizers.

www.windmill.co.zw

Zimbabwe FertilizerCompany Ltd

Inputs35 CoventryRoad,Workington,

+263 (4) 753882Production of Nitrogen (P), Phosphorus (P) andPotassium (P) based fertilizers and agro-chemicals.

www.zfc.co.zw

Zimplow Holdings Ltd Inputs

AON House,Northridge Close,NorthridgeOffice,Borrowdale,Harare

+263 (4) 883888Production of man and animal drawn farmimplements distribution of mechanised farmequipment.

www.zimplow.co.zw

http://www.suncrest.co.zw/


ANNEX 7: REFERENCES

African Economic Outlook, Zimbabwe 2014; AfDB/UNDP

Bauer, Joerg. The Flight of the Phoenix: Investing in Zimbabwe's Rise from the Ashes during theGlobal Debt Crisis, July 2013

Bernsten, R, Chamboko, T and Mubvuta, D. Horticultural sector in Zimbabwe: a synthesis of keyissues to be used in the competitiveness impacts of the business environment reform (cyber)assessment, 2011

Chains for fresh fruit and vegetables, Food Security Research Project Report, 2013

Classification of Instructional Programme (CIP). Potato production in Sub-Saharan Africa,International Potato Centre Report 2010. CIP Annual report; International potato centre, 2010.

Cromme, N., Prakash, A.B., Ezeta, F. Strengthening potato value chains. Technical and Policy optionsfor developing countries, Food and Agriculture Organization and the Common Fund for Commodities,Rome, 2010

Deloitte: Doing Business in Zimbabwe, April 2013

Department of Production Engineering and Technology (2010), Chinhoyi University of Technology,P. Bag 7724, Chinhoyi, Zimbabwe.

FAO: Food and Agricultural Organisation (FAO statistics). Crop Prospects and food security situationreport, 2012

Joseph Rusike. Prospects for agricultural mechanisation in communal farming systems: a case studyof Chiweshe tractor mechanisation project, Thesis (M. Phil.)--University of Zimbabwe, 1988

Journal of Development and Agricultural Economics, Vol. 4 (6). Horticulture Farmers in ChinamoraDistrict, Zimbabwe, 2009

Kagoro, J.M. and Chatiza, K. Dairy Subsector Study, 2012

Kanyenze, Godfrey. Beyond the Enclave: Towards a Pro-Poor and Inclusive Development Strategy forZimbabwe, July 2011

Kuhudzai N., Zimtrade. Horticulture Zimbabwe, June 2012

Mafu V., Zimtrade. Agricultural Equipment and Implements, March 2011

Matondi P. and Chikulo S. Governance over fruit and fresh vegetables in Zimbabwe, 2011

Ministry of Agriculture, Mechanization and Irrigation Development . Second Round Crop andLivestock Assessment Report (2013/14 Season), April 2014

Ministry of Industry and Commerce: Industrial Development Policies (2012-2016), National TradePolicy (2012-2016)

Ministry of Finance: Treasury Statement of Economy Report: The 2014 National Budget Statement,March 2014

Mudzonga E. and Chigwada T. Agriculture: Future scenarios for Southern Africa; A Case Study ofZimbabwe’s Food Security, 2009

Royal Tropical Institute: Chain empowerment: Supporting African farmers to develop markets; RoyalTropical Institute, Amsterdam, 2009

http://www.worldcat.org/search?q=au%3ARusike%2C+Joseph.&qt=hot_author


Selby, A. Losing the Plot: The Strategic Dismantling of White Farming in Zimbabwe 2000-2005,December 2006

Shumba E.M. and Whingwiri E. Commercialisation of Smallholder Agriculture, 2009

SNV: RARP CSF - Horticulture Subsector Study, 2014

TechnoServe: Southern Africa Soy Roadmap – Zimbabwe Value Chain Analysis (Nov. 2010-Feb. 2011)

World Bank: Doing Business in Zimbabwe 2014

ZFU: Zimbabwe National Horticulture Producers Association: Strategic Plan (2014-2018)

Zimstats: Business Tendency Survey (BTS) (Tri-Annually 2012)

Zimstats: Publications, ZIMDAT downloads, Statistics, http://www.zimstat.co.zw, 2014

Zimtrade: Links to Government Policies, Trade Agreements, Export Sector and Market Brief; Focus onthe Netherlands Markets, Standard Association of Zimbabwe, August 2014

Zivenge E. and Karavina C. Analysis of Factors Influencing Market Channel Access by Communal,2012


Embassy of the Kingdom of the Netherlands The Office of the Agricultural Counsellor2 Arden Road, Newlands 210 Florence Ribeiro/Queen Wilhemina AvenuePO Box HG 601, Highlands, New Muckleneuk 0181Harare, Zimbabwe Pretoria, South AfricaTel: +263 4 776 701/6 Tel: +27 12 425 4570Fax: +263 4 776 700 Fax: +27 12 425 4571Email: [email protected] Email: [email protected] www.dutchembassy.co.za

agribusiness in zimbabwe opportunities for ......2000. the royal netherlands embassy (rne) in harare...

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